GBP/USD struggling to sustain moves beyond 1.2300 handle

Haresh Menghani FXStreet

The GBP/USD pair once again ran through some fresh offers near 1.2300 handle and has now retreated to 1.2275-70 region.

The US Dollar selling pressure seems to have stalled following the release of better-than-expected weekly jobless claims data that showed initial claims for the week ended Jan. 6 rose less-than-expected to 247K as against consensus estimates of 255K and previous week's 237K (revised higher from 235K previously reported).

Adding to this, hawkish comments from Philadelphia Fed President Patrick Harker supporting expectations of three Fed rate-hikes in 2017 further collaborated towards restricting further greenback downslide.

The pair, however, held on to marginal daily gains in wake of St. Louis Fed President James Bullard's (non-voter) forecast for only one Fed rate-hike in year.

Moreover, fading optimism over stronger US economic growth under the incoming Trump administration, following Wednesday's disappointment Donald Trump's first news conference as President-elect, continued weighing on the greenback and is helping to the pair to hold closer to weekly highs.

Technical levels to watch

Immediate downside support is seen near 1.2240 level below which the pair is likely to drift back to 1.2200 handle, en-route its next support near 1.2155-50 region. On the upside, 1.2300-1.2310 area remains immediate strong hurdle, which if conquered could trigger a fresh bout of short-covering and might lift the pair beyond 1.2400 round figure mark, towards testing 50-day SMA strong resistance near 1.2425-30 region.

1 Week
1 Month
1 Quarter

1 Week

Avg Forecast 1.2306

30% Bullish
30% Bearish
40% Sideways

Bias Sideways

1 Month

Avg Forecast 1.2237

27% Bullish
60% Bearish
13% Sideways

Bias Bearish

1 Quarter

Avg Forecast 1.2098

5% Bullish
58% Bearish
37% Sideways

Bias Bearish

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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