GBPUSD

The GBP/USD pair is about to conclude a week under the influence of the Christmas holiday and New Year's psychology. While the weak reaction above the 34-day average of the classic Dollar Index and strong trend theme continue, there is curiosity about whether a correction will occur after recent rises. The reaction of the Dollar Index at the 108.25 level could play a critical role. The positive trend in Asian indices and the flat closing of US indices may have indirect effects on the direction of the pair. The flat trend of the Dollar Index, along with the decline in US bond yields, is also noteworthy.

When analyzing the technical outlook of GBP/USD, the desire for a continuation of the negative trend is apparent as long as the pair remains below the strong resistance level of 1.2610. In this case, pressures towards the 1.2485 and 1.2445 support levels can be observed. Particularly, the bottom point at the 1.2485 level could be a crucial indicator of whether the negative trend will persist. In the event of a possible recovery, it should not be forgotten that the pair must make sustained moves above the designated resistance levels for the current scenario to be considered invalid. The daily RSI indicator is at the 49 level, showing a neutral outlook. The pair recorded a slight decrease of 0.02% compared to the previous day.