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The GBP/USD pair recently pulled back from the 1.2810 level and is now trading near a crucial zone around 1.2760. On the 4-hour chart, the price is between the 200 EMA and the 50 EMA, with both moving averages converging. This suggests a potential for significant price movement soon.
Key Technical Levels:
- Resistance: The 1.2835 level is a strong resistance, preventing any upward movement at the moment.
Support Levels:
- 1.2670: If selling pressure increases, the next key support target is 1.2670.
- 1.2570: A further decline could push the pair towards 1.2570.
Economic Outlook for December 11, 2024:
Important economic releases from both the United States and the United Kingdom on December 11 are expected to add volatility to the GBP/USD pair.
- For USD:
- US CPI Data: The U.S. Consumer Price Index (CPI) will be released. A higher-than-expected inflation reading could strengthen the USD and put more bearish pressure on GBP/USD.
- FOMC Member Speeches: Speeches from Federal Reserve officials could give clues about future U.S. monetary policy, impacting market sentiment.
- For GBP:
- UK GDP Data: The UK’s Gross Domestic Product (GDP) data will be closely watched. A weaker-than-expected GDP figure could drag the pound lower.
- Industrial and Manufacturing Production: Data on the UK’s industrial and manufacturing sectors will provide further insights into the country’s economic health and may influence the GBP.
Summary:
The GBP/USD pair is currently at a critical point, with the potential for a major price move. If the bearish trend continues, the pair could test the 1.2670 support level, and potentially move toward 1.2570. The 1.2835 level will continue to act as resistance.
With key economic releases scheduled for December 11, both from the U.S. and the UK, traders should remain alert for potential market-moving events. This analysis offers a roadmap of key levels and events to watch for in the coming days.
