Expectations and Analysis of GBP/USD

26 Des 2023

Forecasting GBP/USD, the British Pound against the US Dollar, based on performance on the daily chart below, indicates that it is still moving within an upward channel. Recent developments have been a response to signals from global central banks in their final meetings of 2023. However, the economic weakness in the UK continues to hinder a strong upward move of the British Pound against other currencies. Technically, the bullish side still needs to break through successive resistance levels at 1.2785 and 1.2850. To confirm control and ultimately advance towards the next psychological resistance level at 1.3000. On the other hand, returning to the support level at 1.2580 during the same timeframe will be crucial for the bearish side to gain control of the trend. Limited movements are expected today given the market conditions and the holiday season. Throughout this week, restricted movements are anticipated as investors are reluctant to exit the market during the holiday season, affecting liquidity.