The GB Pound has retained an extremely positive tone versus the US currency since the US Presidential election result, one of the few global currencies to actually trade higher against the USD since the Trump victory.
Moreover, the GBPUSD (Cable) push above 1.2674 in early December has created short/intermediate-term-term basing structure, which shifts the intermediate-term outlook to a broader range theme (from bearish).
Within this range environment, the FX forecast for GBPUSD is higher into early December and potentially on into year-end.
The push last week above the key 1.2674 level has shifted the intermediate-term outlook to neutral (from bearish).
Short/ Intermediate-term Range Parameters: We now see the range defined by 1.3121 and 1.2083.
Range Breakout Challenge
- Upside:Above 1.3121 aims higher for 1.3445 and 1.3534.
- Downside:Below 1.2083 sees risk lower for 1.1943 and 1.1000.
A rebound from midweek from ahead of 1.2385 support above a key resistance at 1.2674, has reinforced the recovery effort from mid-November, to maintain upside risks into Monday.
- We see an upside bias for 1.2737; break here aims for 1.2789, maybe 1.2849.
- But below 1.2624/18 opens risk down to 1.2559.
Daily GBPUSD Chart