The GBP/USD pair trades around 1.2680 holding on to gains amid broad dollar's weakness, with a modest positive stance in the short term, as despite trading above a daily ascendant trend line coming from this year high, the bullish move lacks momentum, as technical indicators in the 4 hours chart present neutral or bearish slopes within positive levels. In the mentioned chart, the pair is trading above a bullish 20 SMA but below a bearish 200 EMA, this last at around 1.2760, with gains above this last favoring an upward extension up to 1.2800.
Support levels: 1.2660 1.2625 1.2590
Resistance levels: 1.2710 1.2760 1.2800
2. Fundamental Overview
The Sterling Pound traded as high as 1.2706 against its American rival, backed by solid UK Retail Sales and an uneventful BOE. According to the official figures, retail sales in the kingdom rose 1.4% MoM and by 3.6% YoY, roughly doubling the market's expectations, helped by Black Friday discounts. As for the BOE, MPC's unanimously decided to keep rates and the APP unchanged, as expected, amid Brexit uncertainty having "intensified considerably." Policymakers are confident that the continued slide in oil prices will help to drag inflation below 2.0% soon. Carney & Co. could do little to move the Pound, which now depends purely on Brexit. Meanwhile, the UK Parliament started its winter recess and will reconvene in the second week of January, when they are expected to begin discussing May's deal. This Friday, the UK will release the final version of its Q3 GDP, foreseen unchanged from the previous estimate at 0.6% QoQ.
3. General opinion
Before European market, the price stays in a range. Hope to expect more pips.