Thu, Dec 09, 2021 @ 08:36 GMT
HomeContributorsTechnical AnalysisGBP/USD Poised To Begin Recovering

GBP/USD Poised To Begin Recovering

‘The dollar is struggling as U.S. Treasury yields retreated from highs.’ – JP Morgan Chase Bank (based on Reuters)

Pair’s Outlook

Even though the GBP/USD currency pair experienced strong downside volatility on Wednesday, it still managed to close above the 1.2460 psychological support. Assuming the given support level remains strong the Cable should now edge higher, ignoring the immediate resistance, namely the weekly PP at 1.2474. Instead, attention should be paid to the 20-day SMA, which rests around 1.2521, but the intraday ceiling could even be the 1.2550 mark—also a psychological level. Meanwhile, technical indicators support the possibility of the positive outcome and an additional purchase signal was provided two days ago, when the 55-day SMA climbed over the 100-day one.

Traders’ Sentiment

Bullish sentiment still holds more or less at the same level, taking up 61% of the market today. The share of sell orders slid from 56 to 53%.

Dukascopy Swiss FX Grouphttp://www.dukascopy.com/
This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.

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