- A recovery in the risk-on mood has underpinned the Pound Sterling.
- The Cable is hovering around the downward-sloping trendline of the Descending Triangle pattern.
- A break inside the bullish range of 60.00-80.00 by the RSI (14) will trigger the bullish momentum.
The GBP/USD pair is displaying a lackluster performance in the Asian session as investors are restricting themselves from making large positions amid the festive market mood. The Cable is oscillating in a 10-pips range below 1.2060 and is likely to remain sideways ahead.
Meanwhile, the US Dollar Index (DXY) has attempted a recovery after dropping to near 103.50. The USD Index witnessed an intense sell-off on Thursday amid a recovery in the risk-appetite theme. The return on 10-year US Treasury bonds has dropped below 3.83% in early trade.
The Cable is gathering strength to deliver a breakout of the Descending Triangle chart pattern on an hourly scale. The major is hovering around the downward-sloping trendline is plotted from December 19 high at 1.2242 while the horizontal support of the aforementioned chart pattern is placed from the December 22 low at 1.1992.
The pair is currently holding above the 20-period Exponential Moving Average (EMA) around 1.2050, which indicates the short-term upside trend is still solid.
While the Relative Strength Index (RSI) (14) is oscillating in a 40.00-60.00 range, which indicates a consolidation ahead. A break inside the bullish range of 60.00-80.00 will trigger the bullish momentum.
Should the Cable surpasses December 27 high at 1.2112 decisively, Pound Sterling bulls will drive the asset toward December 21 high at 1.2189 followed by December 19 high at 1.2242.
On the flip side, a decisive downside below December 22 low at 1.1992 will trigger a breakdown of the Descending Triangle and will drag the Cable toward November 29 low at 1.1940. A slippage below the latter will expose the Cable for more weakness toward November 30 low around 1.1900.
GBP/USD hourly chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD holds above 1.0550 on renewed US Dollar weakness
EUR/USD stabilizes above 1.0550 on Monday. A positive shift in risk sentiment curbs the safe-haven demand for the US Dollar, offering some comfort to the pair. Later in the week, US inflation data and ECB policy announcements could drive EUR/USD's action.
GBP/USD rises beyond 1.2750 as risk appetite returns
GBP/USD picks up fresh bids and clings to modest daily gains above 1.2750. Markets cheer improving risk sentiment as traders shrug off geopolitical risks and reposition ahead of the US inflation test, making it difficult for the US Dollar to gather strength.
Gold extends daily rally above $2,670 on Chinese stimulus hopes
Gold gathers bullish momentum and trades above $2,670 on Monday. News of China planning to inject further stimulus into the economy boosts XAU/USD as investors gear up for this week's key data releases and central bank meetings.
Five Fundamentals for the week: Currencies set to rock on diverging central bank decisions Premium
The only way is down – but not in the land down under. Central banks in the Eurozone, Canada and Switzerland are on course to cut rates this week, ahead of a similar move in the US next week. Inflation data in the world's largest economy stands out as the main macro data release.
Bitcoin Price Forecast: Amazon shareholders advocate for BTC adoption amid Microsoft’s investment vote
Bitcoin edges down 2.5%, trading below $98,500 on Monday, after rallying 4% and reaching a new all-time high of $104,088 last week. As BTC reached its $100K milestone, big corporates showed interest in the largest digital asset by market capitalization.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.