Pound’s upward move faces a lot of resistance in the near-term, with major technical levels and Brexit headlines both weighing on the GBP.
With markets slowing down for the Christmas holidays, investors are already preparing to watch January’s high-impact activities.
The GBP/USD pair is continuing to go higher in early Wednesday action due to a softening US Dollar. The Brexit concern is set to idle through the Christmas holidays, but UK PM Theresa May will be seeing a large January to kick off 2019.
The British Pound started a decent upward move from the 1.2540 swing low against the US Dollar. The GBP/USD pair traded above the 1.2580 and 1.2600 resistance levels to move into a positive zone.
There was also a close above the 1.2645 resistance and the 50 hourly simple moving average. The pair traded as high as 1.2705 recently and later corrected lower. However, the pair found support near 1.2620 and two bullish trend lines with current support near 1.2650 on the hourly chart.
The pair recovered and it is currently above the 1.2660 level and the 50% fib retracement level of the last decline from the 1.2705 high to 1.2621 low.
Overall, the pair remains well supported on the downside near the 1.2650 level and it seems like it could continue to move higher towards the 1.2700 or 1.2720 levels.