GBP/USD Price analysis: struggling to retain the green above 1.2000


  • US PCE inflation eased as anticipated in November, Durable Goods Orders disappointed.
  • GBP/USD is struggling to retain the 1.2000 mark as US Dollar demand increases.
  • US Dollar demand increases ahead of the long weekend.

Following a short-lived slide to 1.2022, a fresh daily low, GBP/USD trimmed losses and flirted with daily highs. It currently trades in the 1.2040 price zone as speculative interest is still digesting mixed United States macroeconomic figures. On the one hand, the Personal Consumption Expenditures (PCE) Price Index rose by  5.5% YoY in November from 6.1% in October, further indicating easing inflationary pressures in the country.

On the other, Durable Goods Orders in the same month unexpectedly declined by a whopping 2.1% MoM, much worse than the 0.6% decline anticipated by market players. However, the core reading, Nondefense Capital Goods Orders ex Aircraft, rose 0.2%, better than the unchanged reading expected.

US Dollar initially appreciated with the news, then turned south, now rallying again on the back of fresh weekly highs in Treasury yields. The yield on the 10-year note jumped to 3.728%, its highest for December, while the -year note yield advanced to 4.327%. Yields held on to gains ahead of Wall Street’s opening, while US indexes are poised to open with modest gains, following the lead of their overseas counterparts.

Meanwhile, the British Pound remains weak after the latest macroeconomic releases confirmed the United Kingdom is suffering a recession that will likely extend well into 2023.

GBP/USD technical perspective

GBP/USD is little changed on a daily basis as winter holidays kicked in, limiting volumes. Technical readings in the daily chart hint at further declines ahead s the pair develops below a bearish 200 SMA after breaking below it on Thursday. Technical indicators, in the meantime, develop within negative levels, lacking evident directional strength but showing no signs of bearish exhaustion and far above oversold readings.

The weekly low at 1.1991 is the immediate near-term support level, en route to 1.1950. A daily close near the latter could anticipate a steeper decline next week. Sellers are adding shorts at around 1.2080, the immediate resistance level, followed by 1.2140.

GBP/USD

Overview
Today last price 1.2044
Today Daily Change 0.0003
Today Daily Change % 0.02
Today daily open 1.2041
 
Trends
Daily SMA20 1.2172
Daily SMA50 1.1812
Daily SMA100 1.1672
Daily SMA200 1.2081
 
Levels
Previous Daily High 1.2147
Previous Daily Low 1.1992
Previous Weekly High 1.2447
Previous Weekly Low 1.212
Previous Monthly High 1.2154
Previous Monthly Low 1.1147
Daily Fibonacci 38.2% 1.2052
Daily Fibonacci 61.8% 1.2088
Daily Pivot Point S1 1.1973
Daily Pivot Point S2 1.1906
Daily Pivot Point S3 1.1819
Daily Pivot Point R1 1.2128
Daily Pivot Point R2 1.2215
Daily Pivot Point R3 1.2283

 

 

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