Market news
24.11.2022, 09:14

GBP/USD Price Analysis: Bulls gather strength to take out the key 1.2200 resistance

  • GBP/USD kicks off the week on the wrong footing amid resurgent US Dollar demand.
  • Risk aversion weighs negatively on the Pound Sterling ahead of BoE-speak.
  • GBP/USD buyers stay hopeful amid bullish RSI, eyes on 1.2128 rising wedge hurdle.

GBP/USD is consolidating the upside below 1.2100, having failed to sustain above the latter earlier in the Asian session this Thursday. The strength in the major can be mainly attributed to the broad-based weakness in the US Dollar following the dovish FOMC minutes and downbeat US S&P Global PMIs.

The greenback has failed to capitalize on a cautious market mood, courtesy of the record high covid cases in China and the resultant restrictions. The subdued trading on Thanksgiving Day is also adding to the weight on the US Dollar while keeping GBP/USD afloat.  

The upside in the pair, however, appears capped on account of looming Brexit concerns. UK Prime Minister Rishi Sunak said that Britain will not pursue any post-Brexit relationship with the EU "that relies on alignment with EU laws”.

Looking forward, thin market conditions could exaggerate the moves in GBP/USD pair while traders will also closely follow the speeches from the Bank of England (BoE) policymakers in the day ahead.

From a short-term technical perspective, GBP/USD is gathering strength to clear out the critical resistance near 1.2200, which is the convergence of the rising wedge upper boundary and the bearish 21-Daily Moving Average (DMA).

The 14-day Relative Strength Index (RSI) has turned flat while above the midline, justifying the listless action in the pair, at the moment. Although bulls stay hopeful so long as the RSI holds above the 50.00 level.

Acceptance above the aforesaid key resistance will initiate a solid uptrend towards the 1.2250 psychological level.

GBP/USD: Daily chart

On the flip side, bears need a sustained move below the 1.2050 support area to negate the upbeat momentum. The downside will then open up toward the lower boundary of the rising wedge at 1.1784.

The next relevant cushion is seen at the confluence of the 21 and 100-Daily Moving Averages (DMA) at around 1.1660.

GBP/USD: Additional technical levels

 

© 2000-2024. All rights reserved.

This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Bank
transfers
Feedback
Live Chat E-mail
Up
Choose your language / location