GBP/USD Price Analysis: Struggles at the 200-day EMA, plummets below 1.2000
The GBP/USD moved downward on Monday, spurred by tensions arising in China due to Covid-19 zero-tolerance restrictions. US central bankers foresee a 2023 year of high-interest rates as they commit to higher for longer bolstered the US Dollar (USD). At the time of writing, the GBP/USD is trading at 1.1957, below its opening price by 0.07%, as the Asian session begins.
GBP consolidated gains
The pound holds onto its gains after the PPI for October was revised upwards. As the pair approaches the August high of 1.2270, a bearish RSI divergence is a warning sign that the rally may be running out of juice. Profit-taking could be expected in this major supply area while those who hold a bearish view in the medium-term may look to sell.
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