GBP/USD Resilient Above 1.2800 Amidst Dollar Weakness

Dec 28, 2023

GBP/USD saw a slight uptick above 1.2800 in early European trading on Thursday, supported by the prolonged weakness of the US Dollar due to bets on the Fed's dovish stance. US unemployment benefit claims data was released in a relatively quiet market. The currency pair, currently trading just above 1.2700, may find technical buyer interest if it confirms this level as support. In such a case, 1.2750 and 1.2790-1.2800 serve as potential resistance levels. Failure to hold above 1.2700 could prompt support at 1.2660 (50-period SMA), 1.2630 (100-period SMA), and 1.2600 (23.6% Fibonacci retracement). GBP/USD, influenced by broad USD selling pressure on Thursday, sought to recover losses, maintaining stability around 1.2700 as the market assessed the latest UK data on Friday.