GBP/USD Price Forecast – British Pound Locked In Familiar Price Levels amid Holiday Thin Market

Holiday-thinned trading is expected to keep the currency locked in range bound price action.
Colin First
GBPUSD Wednesday
GBPUSD Wednesday

The British Pound is also mirroring common currency’s price action today and is trading range bound near recent highs on broad based dollar weakness. The US Greenback is trading bearish against all major global currencies pressured by a cocktail of negative factors including heightened concerns over a partial U.S. government shutdown and tension between the White House and the Federal Reserve. Fears of a U.S. and global economic slowdown have sent U.S. 10-year yields tumbling by around 25 basis points in December, adding to the increasing strain on the dollar and further darkening its outlook. Moderating U.S. growth and political tensions are negative for the dollar which is expected to provide support for Pound bulls in immediate and near future market hours.

Holiday Thin Market Capped GBP Bull’s From Breaching Key Resistance Level

As of writing this article, GBPUSD pair is trading at 1.2710 up by 0.25% on the day. With the absence of the economic data and Brexit-related headlines amid holiday thin market that pair has very little volatility during today’s trading session. As year end holiday season mood is highly prevalent in market, investors maintain cautious tone despite lack of high impact news on cues which paint bearish picture for both GBP & USD once usual trading activity resumes on first week of January 2019. On release front, calendar has no major releases during US markets hours while UK markets are closed owing to Boxing Day celebrations effectively capping any chance of short term profit opportunities leaving the pair to continue its subdued price action.

When looking from technical perspective, the pair has breached major resistance level of 1.27 handle on broad based weakness but failed to breach resistance at 1.275 handle moving down significantly and is swinging on either sides of 1.27 handle during late Asian market hours. The technical oscillators including Momentum and the Relative Strength Index both remain in the neutral territory. The Slow Stochastic is elevated making a bearish crossover just below the overbought territory. The holiday-thinned session is expected to see GBP/USD remain locked in range bound price action with resistance at 1.2750 and 1.2800 handle to the upside and support at 1.2660 and 1.2600 handle to the downside respectively.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.