Thursday, December 26, 2024 8:20 AM EST
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GBP/USD outlook – technical analysis
GBP/USD Monthly chart
GBP/USD broke out above its falling trendline dating back to 2007 but failed to extend the breakout. GBP/USD is testing the trendline support.
(Click on image to enlarge)
Source: TradingView
GBP/USD Weekly chart
The BoE will likely cut interest rates more than the Federal Reserve next year, which could put GBP/USD under further pressure. The technical picture also looks more bearish.
GBP/USD ran into resistance at 1.3425 and rebounded lower, breaking below the 200 SMA and the rising trendline dating back to the September 2022 low. More recently, the price has taken out the 100 SMA, which, combined with the RSI below 50, keeps sellers hopeful of further losses.
If sellers take out the 1.25 support, 1.23 support comes into focus; the 2024 low, break below here, creates a lower low. Below here, 1.20, the 2023 low comes into play.
On the upside, buyers will look to rise above 1.28 to expose the 200 SMA and 1.30 psychological level. A rise above 1.34 would create a higher high.
(Click on image to enlarge)
Source: TradingView
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Disclaimer: StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information ...
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Disclaimer: StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
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