December 23, 2024 at 03:37PM
The GBP/USD rallied on Friday after sharp declines on Thursday, driven by the BOE’s dovish rate decision, where three members voted for a rate cut. The downward move pushed the pair below the November low of 1.24865, reaching 1.24739—the lowest level since May. However, momentum stalled, and the pair rebounded on Friday, supported by weaker-than-expected US PCE data.
The rebound extended into a key swing area between 1.2596 and 1.26147, with the high reaching 1.26133, just shy of the upper boundary. The pair later rotated lower, closing at 1.2564.
In today’s trading:
The price saw a modest recovery during the Asian session, peaking at 1.2587, but reversed lower during the European and early North American sessions.
The low price reached 1.2511, and the pair is currently trading at 1.2525.
What’s next?
Sellers remain in control: The inability to break above the swing area (1.2596–1.26147) or the falling 100-hour moving average (1.2600) keeps the bearish momentum intact. A move above and sustained trading beyond these levels would shift control to buyers.
Key downside levels: To strengthen bearish momentum, the pair needs to break and hold below support levels, including the November lows (1.25237, 1.2506, 1.24865) and Friday’s low (1.24739).
The battle between these critical levels will determine the next directional move. Sellers currently have the upper hand. In
This article was written by Greg Michalowski at www.forexlive.com.
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