GBP/USD trades above 1.25000

Source: Dukascopy Bank SA
The Federal Reserve's decision to cut interest rates on its native currency has had a significant impact on GBP/USD. The rate decreased from the 1.27000 price level to 1.25000 before recovering above 1.25500.

Economic Calendar


No significant volatility is expected this week, considering the low number of macroeconomic data coming out of both the UK and the United States.

GBP/USD hourly chart analysis

The rejection of the 1.27700 price level added downward pressure to the FX pair. Before recovering above 1.25500, the price tested support levels at 1.2500. Price consolidation can be expected this week, as no significant macroeconomic data is expected, and markets are faced with a shortened trading week.

Hourly Chart

GBP/USD daily candle chart analysis

On the daily timeframe, the descending channel pattern has been broken; however, it may take a few days to fully confirm whether the descending channel is reversing. Additionally, the simple moving averages indicate that the current FX price is below the average prices for the 55, 100, and 200-day periods.

Daily chart


Traders are long
On December 23th, the Dukascopy Trader Sentiment Monitor suggests that the majority, more than 70%, of traders are participating in the market as buyers, with the rest as sellers.

Compared to other GBP currency pairs, only EUR/GBP shows the same level of buy sentiment as GBP/USD.



A shortened trading week may bring lower trading volumes; however, it can create better trade setup opportunities if technical analysis suggests that a trading bias can be determined for instruments in the broader market.

Actual Topics

Subscribe to "Fundamental Analysis" feed

Subscribe
To learn more about Dukascopy Bank CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
For further information regarding potential cooperation,
please call us or make callback request.
To learn more about Dukascopy Bank Binary Options / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Dukascopy Bank CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Crypto Trading / CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Business Introducer and other trading related information,
please call us or make callback request.
For further information regarding potential cooperation,
please call us or make callback request.