- GBP/USD was seen consolidating its recent gains to a near two-month high.
- The set-up supports prospects for a further near-term appreciating move.
- Any meaningful dip might still be seen as an opportunity for bullish traders.
The GBP/USD pair extended its sideways consolidative price action and remained confined in a narrow trading band, just below the 1.3600 mark through the mid-European session.
From a technical perspective, acceptance above the 100-day SMA supports prospects for an extension of the recent appreciating move further beyond the 61.8% Fibonacci level of the 1.3834-1.3161 fall. Some follow-through buying beyond the 1.3600 mark will reaffirm the positive outlook.
The GBP/USD pair might then accelerate the momentum towards testing a descending trend-line hurdle, around the 1.3675 region. The mentioned barrier extends from July 2021 swing high and should act as a key pivotal point, which if cleared will be seen as a fresh trigger for bullish traders.
On the flip side, the 100-day SMA, currently around mid-1.3500s, now seems to protect the immediate downside. Any subsequent decline might still be seen as a buying opportunity and remain limited near the key 1.3500 psychological mark, which coincides with the 50% Fibo. level.
A convincing break below the mentioned support levels could prompt some technical selling and drag the GBP/USD pair to the 1.3460-55 region en-route the 1.3430 area. This is followed by the 38.2% Fibo. level/50-day SMA confluence resistance breakpoint, near the 1.3400 round figure.
GBP/USD daily chart
Technical levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD surpasses 1.1000 as DXY accelerates slide
EUR/USD rose above 1.10000, reaching the highest intraday level since August 10. The pair is supported by broad-based US Dollar weakness and renewed hopes the Fed is done with rate hikes. The DXY dropped below 103.00 to the lowest in three months.
GBP/USD runs past 1.2700 as US Dollar collapses
GBP/USD rose further during the American session and trades above the 1.2700 mark. A weaker US Dollar continues to support the upside in the pair, as well as central banks' imbalances, with hawkish comments from the BoE and a softer message from Fed's officers.
Gold heading towards 2020 record high
Gold prices extended gains on Tuesday, with XAU/USD trading as high as $2,038.45 after Wall Street's opening, currently holding nearby. The US Dollar has remained under selling pressure since the day started.
Dogecoin price might recover losses if volume picks up
Dogecoin has noted a massive rise in wallet addresses with a non-zero balance. This increase is typical of rising demand among market participants for DOGE. On-chain metrics paint a bullish outlook for Dogecoin.
Mullen Stock Forecast: MULN falls more than 8% on Tuesday
Mullen Automotive (MULN), a popular electric vehicle (EV) penny stock, descended more than 8% on Tuesday. Shares of the California-based company have trended 39% lower over the past month as the market awaits a shareholder vote on another reverse split scheduled for December 15.