GBP/USD Price Analysis: Gains traction below 1.2500, investors await BoE’s Bailey speech
The GBP/USD pair holds positive ground around 1.2485 during the early European session on Monday. The recovery of the pair is bolstered by the softer US Dollar (USD) and lower US Treasury bond yields. Investors will take more cues from Bank of England (BoE) Governor Andrew Bailey's speech on Monday ahead of the Federal Open Market Committee (FOMC) Meeting Minutes on Tuesday.
From the technical perspective, GBP/USD holds above the 50- and 100-hour Exponential Moving Averages (EMAs) with an upward slope on the four-hour chart, suggesting the path of least resistance is to the upside. Furthermore, the Relative Strength Index (RSI) holds in the bullish territory above 50, which means further upside looks favorable. Read more...
GBP/USD edges higher amid weaker USD, remains below 100-day barrier near 1.2500
The GBP/USD pair attracts some dip-buying during the Asian session on Monday and touched a three-day to, around the 1.2470 region in the last hour. Spot prices, however, remain below the 100-day Simple Moving Average (SMA) pivotal resistance near the 1.2500 psychological mark and a two-month peak touched last week.
The US Dollar (USD) struggles to register any meaningful recovery and languishes near its lowest level since September 1, which is seen as a key factor acting as a tailwind for the GBP/USD pair. The US CPI and the PPI report released last week indicated that the high-prices nightmare has finally ended. This should allow the Federal Reserve (Fed) to maintain the status quo at its December meeting and continue to weigh on the USD. Read more...
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