Cable continues its general climb higher which hints at finding resistance at 1.2736 where a longer upper wick on the daily candle chart can be seen alongside today's price action which reveals a similar scenario thus far.
The pair has enjoyed a modest decline but price action has broadly been contained within a trading channel highlighted in orange. the 50 day simple moving average appears to have dynamics support for the pair but overall momentum appears to be waning according to the MACD indicator.
The signs of fatigue witnessed at 1.2736 could potentially mark a weekly ceiling if the US economy grew faster than anticipated in the final quarter of 2023 when US GDP data is sue on Thursday. Additionally, the Fed’s favoured measure of inflation (PCE) is due on Friday and given the recent lift in December price readings across developed markets, a hotter than expected result could further strengthen the US dollar, weighing on GBP/USD. Dynamic support at the 50 SMA may come into view, followed by 1.2585. Thus far, economic data has proven ineffective in driving price action out of the current range.
GBP/USD Daily Chart
The pair has enjoyed a modest decline but price action has broadly been contained within a trading channel highlighted in orange. the 50 day simple moving average appears to have dynamics support for the pair but overall momentum appears to be waning according to the MACD indicator.
The signs of fatigue witnessed at 1.2736 could potentially mark a weekly ceiling if the US economy grew faster than anticipated in the final quarter of 2023 when US GDP data is sue on Thursday. Additionally, the Fed’s favoured measure of inflation (PCE) is due on Friday and given the recent lift in December price readings across developed markets, a hotter than expected result could further strengthen the US dollar, weighing on GBP/USD. Dynamic support at the 50 SMA may come into view, followed by 1.2585. Thus far, economic data has proven ineffective in driving price action out of the current range.
GBP/USD Daily Chart