The GBP/USD pair is displaying resilience. With the Federal Reserve's recent halt in rate hikes, the pair benefits from the ensuing USD softness.
Technical Insights:
The cable has been adhering to support around the 1.2680 region, with an eye on challenging the descending trendline resistance near 1.2720. A clear break above this trendline is critical for the pair to sustain its bullish outlook. Should it succeed forming a bullish flag, the focus will shift to the 1.2800 resistance as a potential target.
Market Positioning:
Despite the lull in trading due to Boxing Day, the GBP/USD pair holds its ground. The dollar's trajectory, on pause from Fed's rate decisions, presents a selling opportunity for the pair. Any significant pullback could entice long entries, especially if the price action confirms a move above the current resistance.
Outlook:
Maintaining a bullish stance, our strategy aligns with seeking long positions on dips. The pair's ability to stay afloat above the 1.2680 support, amid holiday-thinned markets, may indicate underlying strength, with the next sessions likely to confirm this trend if the resistance is breached.