Since the middle of December 23, the GBP/USD currency exchange rate has been trading sideways between the 1.3400 mark and a resistance zone above 1.3420. The sideways trading could be explained by the lack of direction caused by the holiday season.
Economic Calendar
The week before New Year's has no notable scheduled events. Expect the review of the first week of 2022 to be published mid-day on January 4.
GBP/USD short-term review
If the GBP/USD breaks the resistance of the 1.3423/1.3439 zone, the pair could reach the weekly R1 simple pivot point at 1.3499 and the 1.3500 mark. Above these levels, the mid-November high levels could act as resistance at the 1.3510/1.3513 zone. Even higher above, take into account the weekly R2 simple pivot point at the 1.3600 mark.Meanwhile, a bounce off from the resistance zone might look for support in the 50-hour simple moving average near 1.3400 and the 1.3400 mark. Below the 1.3400 mark, the most close by support is provided by the previous December high level zone and the 100-hour simple moving average near 1.3365/1.3375. Meanwhile, the weekly simple pivot point could act as support at 1.3336.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate remains in the borders of the large scale channel down pattern.Most recently, the rate recovered and passed the resistance of the September low level at 1.3410. In the near term future, the pair could find resistance in the 50-day simple moving average near 1.3475.
Daily chart
Read More: Technical Analysis
Traders are neutral
On Monday, traders were neutral, as 50% of trader open position volume on the Swiss Foreign Exchange was in long and short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 70% to sell the GBP against USD.
On Monday, traders were neutral, as 50% of trader open position volume on the Swiss Foreign Exchange was in long and short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 70% to sell the GBP against USD.