Economic Calendar
This week should see a significant increase in volatility, as domestic data will be released regarding retail sales, the unemployment rate, CPI, and the BoE interest rate decision on the 19th of December.
Additionally, the Fed's interest rate decision should have a significant impact on the currency pair.
GBP/USD hourly chart analysis
The rejection of the 1.27700 price level added downward pressure to the FX pair, and on Friday the 13th, the currency pair closed below 1.26200. GBP/USD is recovering and trading above 1.2650 on Monday, supported by UK PMI data showing growth in the private sector in early December. In the US, flash PMI readings for December will be released.
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.Read More: Technical Analysis
Traders are long
On December 16th, the Dukascopy Trader Sentiment Monitor suggests that the majority, more than 72%, 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.
Compared to other GBP currency pairs, only EUR/GBP shows the same level of buy sentiment as GBP/USD.
Although trader sentiment suggests traders have identified currency pair The pair seems to remain in a neutral stance, with no clear trend direction yet. There are key upcoming events, including UK PMI data, the BoE interest rate decision, and US flash PMI readings, which could potentially bring significant volatility and might influence the pair's next move, though the outcome remains uncertain.