GBPUSD retreats within bullish pennant amid dicey markets

٢٦ ديسمبر ٢٠٢٣

GBPUSD struggles to defend the previous weekly gains as bulls lack incentive amid Christmas and Boxing Day holidays in the UK. As a result, the Cable pair eases within a two-week-old bullish pennant. However, the upbeat RSI (14), not overbought, joins the bullish MACD signals to highlight the 1.2630 support confluence comprising 100-SMA and the stated pennant’s bottom line. Even if the quote defies the bullish chart pattern by breaking the 1.2630 key support, an ascending trend line from early November, around the 1.2600 threshold, precedes the 200-SMA surrounding 1.2545 to restrict the Pound Sterling pair’s further downside. Following that, the monthly low of around 1.2500 will act as the final defense of the buyers before giving control to the bears.

Meanwhile, GBPUSD pair’s further upside needs validation from the bullish pennant formation, by successfully crossing the 1.2740 resistance. Also likely to challenge the Cable pair buyers is the latest peak of near 1.2800, as well as an ascending resistance line stretched from late November, close to 1.2830 by the press time. It’s worth noting that the quote’s sustained trading beyond 1.2830 allows the buyers to aim for the 1.3000 psychological magnet and then the yearly peak of near 1.3145.

Overall, the GBPUSD bulls can ignore the latest pullback in the quote unless the price slips beneath 1.2500.