GBP / USD cuts three-day losses in a row and approaches 1.3300

• The pound sterling advances amid mixed market sentiment, favored by the increase in US equities.
• Ómicron’s nervousness – COVID-19 appears to diminish as investors’ appetite for risk moderately improves.
• GBP / USD technical outlook: On the 4-hour chart, the 50 SMA has capped any bullish movement of the British pound three times, at press time it is around 1.3335.

The GBP it rises, cutting losses from three days so far, up 0.32%, trading at 1.3307 during the American session at press time. Market conditions remain mixed, reflected in falling European stock indices, unlike in the US, with the Dow Jones, the S&P 500 and the Nasdaq rising. In addition, it appears that investor concerns related to the new Omicron coronavirus strain just discovered in the last week, abated, as a World Health Organization (WHO) official said some of the first indications are that the most cases are mild.

Either way, markets would likely remain volatile unless market participants gain more clarity on the new variant of COVID-19.

Apart from this, in the overnight session, the GBP / USD registered a daily low at 1.3263, amid the strength of the USD due to the moderation of market sentiment during the Asian session. However, the British pound is experiencing a rally, trading above the 100 and 50 hourly simple moving averages (SMAs) that could favor GBP bulls in the short term, unless USD bulls can push. the pair below the 1.3300 level. The bullish move was courtesy of selling pressure from the USD as US stock indices rally, influencing risk-sensitive currencies like the British pound.

On Wednesday, two Fed lawmakers favored a quick cut on the bonds. In an appearance in Congress, Fed Chairman Powell reiterated that a more rapid reduction of the QE program is necessary so that the Fed can control inflationary pressures. Later, Cleveland Fed President Loretta Mester expressed that a faster reduction would be like “buying insurance” in the need to raise rates as needed.

In the Brexit saga, according to analysts at BBH, they noted that “reports suggest that a compromise on fishing rights is within reach, and the EU praises the granting of a new batch of fishing licenses by the UK as a move towards a concrete long-term deal later this month. “

GBP / USD Price Forecast: Technical Outlook

GBP / USD on the 4-hour chart is biased to the downside, as GBP / USD has tested dynamic resistance at the 50 Simple Moving Average (SMA) three times, unable to break above it. Also, the 100 and 200 SMA at the top of the shorter time frame adds more fuel to the bearish bias.

In the result of a further decline in GBP / USD, the first support would be the December 1 low at 1.3261, followed by an area of ​​confluence around the November 30 low and 1.3190-1.3200.

Additional technical levels