- The British pound is down 0.32%, with market participants awaiting meetings of the US and UK central banks.
- The first COVID-19 death related to Omicron in the UK affected market sentiment, as shown by the slide in global stocks.
- GBP / USD Technical Outlook: Mildly bearish as long as the price of the pair remains below the 200 hourly SMA.
The GBP / USD pair cut some of its gains from last Friday, dropping 0.32%, trading at 1.3226 during the New York session at the time of writing. Investor sentiment is pessimistic, as shown by European stocks ending in the red, while major US stock indices are losing 0.65% to 0.85%.
Since the last session, the British pound has failed to capitalize on a move towards 1.3300, courtesy of increased demand for the dollar. Additionally, the bullish point the Fed over the past two weeks keeps the USD in the lead against most G8 currencies, with the US dollar index rising 0.16% to 96.25, a headwind for the British pound. , which fell from 1.3270 to 1.3220.
GBP / USD Price Forecast: Technical Outlook
The GBP / USD one-hour chart shows that the pair is neutral, albeit slightly bearish, as it has failed to sustain a clear break above the 200-hour SMA 14 days earlier than the Time of publication is at 1.3251. In addition, sterling bears have regained the 50 hourly SMA and are threatening to break below the 100 hourly SMA at 1.3227.
In case of breaking the aforementioned level, the first support would be the daily pivot S1 around the 1.3200-08 range. A break of the latter would expose the December 10 low at 1.3287, followed by the December 8 low at 1.3160.
On the other hand, the first resistance is the 200 hourly SMA at 1.3251. A break above that resistance would open the door for further gains, with the December 10 high at 1.3275. The breakout of the latter region would send the pair towards 1.3300.
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