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.Read More: Technical Analysis
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.
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.