GBP/USD Sideways Trend Amid Holiday Consolidation
The GBP/USD pair is currently trading around 1.2530, showcasing a sideways trend within a narrow range. On the 4-hour chart, the price oscillates between the key support zone of 1.2500 - 1.2510 and the resistance zone of 1.2590 - 1.2600. The moving averages, EMA 34 and EMA 89, are providing dynamic resistance, further limiting any significant upward movement.
The recent modest recovery above 1.2500 is attributed to the softening of the US dollar and risk-averse market sentiment. However, thin trading conditions due to the holiday season have kept the pair in a tight consolidation range, with traders awaiting a return to full market activity in early 2025 for clearer directional cues.
In the short term, if GBP/USD breaks above the resistance at 1.2600, it could target 1.2650 or higher. Conversely, a break below 1.2500 may push the price toward 1.2450, with bearish momentum gaining control. Traders should monitor US dollar movement, risk sentiment, and key macroeconomic data to evaluate the next potential trend in the pair.
The recent modest recovery above 1.2500 is attributed to the softening of the US dollar and risk-averse market sentiment. However, thin trading conditions due to the holiday season have kept the pair in a tight consolidation range, with traders awaiting a return to full market activity in early 2025 for clearer directional cues.
In the short term, if GBP/USD breaks above the resistance at 1.2600, it could target 1.2650 or higher. Conversely, a break below 1.2500 may push the price toward 1.2450, with bearish momentum gaining control. Traders should monitor US dollar movement, risk sentiment, and key macroeconomic data to evaluate the next potential trend in the pair.
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