The GBP-USD opens the week calm. The markets have no United Kingdom economic signals to consider, leaving the GBP at the mercy of the market’s risk sentiment. Meanwhile, the United Kingdom CBI Industrial Trend Orders (ITO) will attract interest later today.
Though we might expect GBPUSD’s reaction to the figures, the December data will unlikely influence the BoE and its financial policy goals. Instead, global recession worries will remain the primary tale alongside the bias towards the Federal monetary policy.
Latest United States economic signals have seen the Federal Reserve adopting a hawkish rate move. There are no speeches from Bank of England financial policy officials to distract market participants today. Instead, investors will have to follow the MPC member chatter.
GBP-USD Price Action
The Pound exchanged hands at $1.21893 during this writing, reflecting a 0.40% upsurge. That came after the GBP-USD plunged to $1.21445 early low before climbing to explore the $1.21917 region. Meanwhile, the Pound should keep the $1.2161 pivot away to eye the enormous initial resistance at $1.2203 before challenging the $1.2265 Friday high.
A $1.22 return would confirm a bullish wave. Nevertheless, improved market sentiments remain essential to support upside breakouts. Intensified bullishness might see the GBPUSD testing the 2nd crucial hurdle at $1.2265. The pair has a 3rd resistance zone at $1.2368.
Dips beneath the pivot would mean hitting the first enormous support at $1.2099. Excluding a risk-off-triggered crash, the pair should escape the $1.20 territory. Further, the 2nd massive footing at $1.2057 should prevent continued dips. Finally, GBP/USD’s 3rd support sits at the $1.1954 mark.
Analyzing the 4hr and EMAs chart, the Exponential Moving Averages painted a bearish outlook. The GBP-USD stands beneath the 100-day Exponential Moving Average ($1.21620). In addition, the 50-day Exponential Movement Average moved into the 100-day Exponential Moving Average, whereas the 100-day Exponential Moving Average contracted into the 200-day Exponential Moving Average, painting bearish signs.
Moving above the $1.21620 100-d Exponential Moving Average would trigger breakouts from the initial resistance of $1.2203, opening the path to $1.22456 (50-day Exponential Moving Average) and the 2nd resistance ($1.2265). Nonetheless, weakness at the 100-day Exponential Moving Average ($1.21620) will expose the closest dependable support of $1.2099. The 200-day Exponential Moving Average stands at $1.19842.