As stated in the 18 December GBPUSD Technical Outlook, the shape of the Brexit deal is by far most important factor for the currency market. We invite you to learn more on this.
18 December, GKFX – GBP/USD fell sharply on Friday from 1.3448 to 1.3301 as US tax optimism strengthened the bid tone around the US dollar.
18 December GBPUSD Technical Outlook
- Yield differential favors downside in the GBP/USD pair.
- Still, the bull flag pattern on the daily chart keeps GBP bulls in the game.
Currently, the 10-year US-UK bond yield differential stands at 122 basis points (bps); the highest level since Jun. 12. The rising yield spread adds credence to the lower highs pattern seen on the daily chart and indicates scope for a drop to 50-day MA of 1.3263. Also, short-term UK-US rate differential crashed to new YTD lows on Friday.
Still, all is not lost for the bulls as the daily chart shows a bull flag pattern. An upside break could revive the rally from the Nov. 13 low of 1.3062.
Support levels: 1.3310 1.3285 1.3230
Resistance levels: 1.3360 1.3400 1.3445
This article “ 18 December GBPUSD Technical Outlook ” was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.
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