Location & Language

Zenfinex Global Limited regulated by the Financial Services Authority (FSA) of Seychelles (SD092)

GBP/USD: A Downward Trend Under Economic and Technical Pressures

The GBP/USD exchange rate continues its downward trend, recording 1.2320 yesterday, the lowest level since April 22, 2024. It is currently trading near 1.2350. This pair has declined by about 8% since its peak on September 26, 2024, when it reached 1.3434, down to the low of 1.2320 recorded yesterday.

Recent UK economic data reveals that the British economy is struggling, as shown by the following:

  • The quarterly GDP growth index fell to 0%, lower than expectations (0.1%) and the previous reading (0.4%).
  • Retail sales showed a monthly growth of 0.2% in November, which is lower than the expected 0.5%.
  • The manufacturing PMI for December dropped to 47.0, lower than expectations (47.3) and the previous reading (48.0).
  • The services PMI for December recorded a growth of 51.1, which is lower than the expected 51.4.
  • The construction PMI for December showed a contraction at 53.3, lower than the expected 54.3 and the previous reading (55.2).

It is worth noting that an important factor has negatively impacted the GBP/USD pair: the strength of the US dollar, due to the outperformance of most US economic data compared to analysts’ expectations, as well as cautious statements from most Federal Reserve members regarding the interest rate trajectory.

Regarding the technical side, if the support level at 1.2393 is broken, there is a possibility of targeting support levels at 1.2290, 1.2218, and 1.2115. If the support level is surpassed, the pair may target resistance levels at 1.2465, 1.2568, and 1.2640.

The Relative Strength Index (RSI) currently stands at 34, indicating negative momentum for the GBP/USD pair. Additionally, the MACD (Moving Average Convergence Divergence) indicator, shown in blue, is below the signal line (orange), which also points to negative momentum.

The Positive Directional Indicator (DMI+) is around 15, while the Negative Directional Indicator (DMI-) stands at approximately 30. The gap between these two indicators is relatively large, suggesting strong selling pressure on the GBP/USD pair. More importantly, the Average Directional Index (ADX) is at about 32, indicating strong downward momentum.

Please note that this analysis is provided for informational purposes only and should not be considered as investment advice. All trading involves risk.

Back

Popular Posts

Australian Dollar Continues to Recover Amid Economic Pressures

Bitcoin Hits Highest Level Since March Amid Resurgence in Bullish Momentum

Comprehensive Analysis: Gold Continues to Rise Supported by Fundamental and Technical Factors

Overview of Key Economic Events from Last Week

Lorem Ipsum

Lorem ipsum dolor sit amet, consectetur adipiscing elit.

Here are some related articles you may find interesting:

Market Insights​

April 25, 2025

Australian Dollar Continues to Recover Amid Economic Pressures

The Reserve Bank of Australia (RBA) held interest rates steady at 4.10% during its meeting on April 1, 2025, for the second consecutive time. Recent...

Market Insights​

April 24, 2025

Bitcoin Hits Highest Level Since March Amid Resurgence in Bullish...

Bitcoin prices surged to $94,700 yesterday, marking their highest level since March 2, 2025. The cryptocurrency has risen by approximately 27% from its April 7...

Market Insights​

April 23, 2025

Comprehensive Analysis: Gold Continues to Rise Supported by Fundamental and...

Gold prices continue to reach new record highs, climbing to $3,500 yesterday. The yellow metal has surged approximately 18% from its low of $2,957 on...

Market Insights​

April 21, 2025

Overview of Key Economic Events from Last Week

Last week witnessed several significant economic events globally. In the United States, data showed mixed performance: retail sales rose at the fastest pace since January...

Ready to Elevate Your Trading Journey?

Open a Taurex account and start trading today.

We’re Sorry

Access to tradetaurex.com
is unavailable in your region

tradetaurex.com is required to abide by global laws and therefore the information on this site is not directed at residents of the United States, Canada, North Korea, Iran, Myanmar, Belgium, Spain, France, Japan, South Korea or any particular countries and is not intended for distribution to, or use by, any person in an country or jurisdiction where such distribution or use would be contrary to local law or regulation.

1 Hour Trading Consultation