GBP/USD Forecast Today 31/12: Faces Resistance (Video)
Date
12/31/2024 2:33:45 PM
(MENAFN- Daily Forex)
The British pound has initially tried to rally during the trading session on Monday, but as you can see, the 1.26 level has offered a significant amount of resistance. And then we turned around and fell hard. The 1.25 level is an area that continues to see a lot of support. It's a large round, psychologically significant figure, and an area that's been important times.
The question now is what happens next because we are at a major inflection point. If the
market were to break down below the 1.25 level, then you could see a drop to the 1.23 level pretty quickly. The US dollar is by far the strongest currency of the majors around the world and with interest rates in America being so high it makes quite a bit of sense. With this I think you've got a situation where you continue to look at rallies as selling opportunities. Now, having said that, the British pound is faring better against the US dollar than many other currencies.
Top Forex Brokers1 Get Started 74% of retail CFD accounts lose money British Pound Decent Overall, but not Here.
So, you can also take this and use this as part of your analysis to perhaps buy the British pound against the Australian dollar, which is doing so much worse. It isn't necessarily that the British pound is going to go flying. It's just that it's doing better than these other currencies. As far as against the US dollar is concerned, the 1.2750 level above will continue to be a significant barrier. It's not until we break above there that I think the market really has a significant chance to take off to the upside. And it's probably worth noting that the 1.2750 level is also backed up by the 50-day EMA as well as the 200-day EMA. I remain a fade the rallies trader in this market.
EURUSD Chart by TradingView
Ready to trade our GBP/USD Forex analysis ? Check out the best forex trading company in UK worth using.
MENAFN31122024000131011023ID1109045345
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.