GBP/USD Forecast: Pound approaches key resistance amid persistent dollar weakness
GBP/USD has reached its highest level since late October at 1.3750 on Thursday but erased a large portion of its daily gains before closing flat near 1.3700. The pair is edging closer to 1.3750 early Friday and additional gains could be witnessed if this level turns into support.
The data published by the UK's Office for National Statistics revealed on Friday that the economic activity in November expanded by 0.9%, compared to the market expectation of 0.2%. On a negative note, Industrial Production increased by only 0.1% on a yearly basis, falling short of analysts' estimate of 0.5%. Read more...
GBP/USD analysis: Trades sideways
The GBP/USD currency exchange rate has been trading between the 1.3700 and 1.3750 levels since the US CPI surge. Most recently, on Friday the rate was approached by the 50-hour simple moving average. Meanwhile, the pair almost in all cases ignored the support of the weekly R2 simple pivot point at 1.3709.
If the currency exchange rate starts a surge, it would have to pass the 1.3750 mark, before aiming at the 1.3800 mark. Above the 1.3800 level, the weekly R3 simple pivot point could act as resistance at 1.3820. Read more...
GBP/USD fails to break above 200DMA in 1.3730s despite solid UK GDP figures, back to consolidation ahead of US data
A much stronger than expected UK GDP growth rate in November and a promising rebound in manufacturing activity in the same month has not been enough to propel GBP/USD above its 200-day moving average at 1.3737. Indeed, having failed to break above the key level, the pair has since fallen back into the 1.3710s, though is still trading with very modest on-the-day gains of about 0.1%. Perhaps it is the fact that the UK GDP growth is expected to go into reverse in December and January amid the disruptive impact of the rapid spread of Omicron that has prevented sterling from benefitting from Friday’s strong data. Perhaps it is the fact that, with the pair trading higher by about 1.0% on the week and on course for a fourth consecutive week of gains, during which time it has rallied more than 4.0% from under 1.3200, GBP/USD looks overbought that is holding it back from further gains. Read more...
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