GBP/USD Outlook: Sterling is holding between 10 and 20SMA’s and awaiting signal from UK CPI data
Cable stands at the front foot and holding under Asian session high at 1.2678, ahead of release of UK CPI data.
Strong upside rejection on Tuesday at 1.2700 zone (Fibo 61.8% of 1.2839/1.2476/falling 20SMA) warns of recovery stall, as daily techs are bearishly aligned, but weaker dollar underpins for now.
Forecast for UK inflation shows slowdown in Nov (y/y 2.3% f/c vs 2.4% prev) and pound could be hurt on weaker than expected figure.
Broken 10SMA (1.2627) marks solid support, which needs to hold and keep recovery attempts alive, however, near-term outlook would remain weak while 1.2700 barrier caps.
Break of either side would provide fresh direction signal. End of two-day FOMC policy meeting and their decision amid wide expectations for dovish hike and strong pressure on Fed from President Trump not to hike at all, is the key event today.
Res: 1.2678; 1.2700; 1.2753; 1.2766
Sup: 1.2657; 1.2627; 1.2609; 1.2564
Interested in GBPUSD technicals? Check out the key levels
Author
Slobodan Drvenica
Windsor Brokers
Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.
