• GBP/USD sees three-day decline, dropping below 1.2700, shedding over 1% during the week.
  • US data reveals disappointing ADP Employment Change and widening trade deficit, pressuring GBP/USD.
  • Despite weak indicators, US Dollar Index rises 0.22% to 104.19, while BoE Governor Bailey signals potential UK rate cuts amid financial pressures.

GBP/USD trips down and extended its losses to three consecutive days; after diving below the 1.2700 figure, the Pound Sterling (GBP) had shed more than 1% of its value, during the week. At the time of writing, the major is trading at 1.2555, down 0.28% after hitting a daily high of 1.2613.

Pound Sterling faces headwinds amid higher interest rates set by the BoE

Investors' sentiment remains depressed as portrayed by Wall Street. The November ADP Employment Change report revealed private hiring increased by 103K, falling short of the forecasted 130K and the previous month's 106K. later, the US Commerce Department, showed October's US trade deficit widened more than anticipated, reaching $-64.3 billion, exceeding the forecast of $-64.2 billion and trailing September's $-61.2 billion.

Despite this weak data, the US Dollar Index (DXY), tracking the dollar against six other currencies, is up 0.22% at 104.19, while US Treasury bond yields fall.

Across the Atlantic, the Bank of England (BoE) Governor Andrew Bailey stressed that UK banks are well positioned to support borrowers, after the BoE released its Financial Stability Report (FSR). Bailey acknowledged that businesses are pressured by higher rates, while households finances remain stretched. Even though BoE’s members had remained hawkish, expectation for rate cuts had begun to gain some steam, with market participants expecting three 25 bps rate cuts by the end of 2024.

GBP/USD Price Analysis: Technical outlook

The daily chart portrays the pair's failure to decisively break the 1.2700 resistance level, exacerbating the GBP/USD’s fall toward current exchange rates. Therefore, sellers are in charge, and if they break support below 1.2550, that could pave the way toward the 12500 mark. Further downside is expected at the 200-day moving          average (DMA) At 1.2478.

GBP/USD

Overview
Today last price 1.2556
Today Daily Change -0.0038
Today Daily Change % -0.30
Today daily open 1.2594
 
Trends
Daily SMA20 1.2502
Daily SMA50 1.2315
Daily SMA100 1.2473
Daily SMA200 1.2477
 
Levels
Previous Daily High 1.2652
Previous Daily Low 1.2578
Previous Weekly High 1.2733
Previous Weekly Low 1.2591
Previous Monthly High 1.2733
Previous Monthly Low 1.2096
Daily Fibonacci 38.2% 1.2606
Daily Fibonacci 61.8% 1.2624
Daily Pivot Point S1 1.2563
Daily Pivot Point S2 1.2533
Daily Pivot Point S3 1.2489
Daily Pivot Point R1 1.2638
Daily Pivot Point R2 1.2683
Daily Pivot Point R3 1.2713

 

 

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