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The GBP/USD currency pair has been trading in a range between 1.2650 and 1.2800 since the beginning of the year. The pair today opened at 1.2741.
From technical perspective, the pair is trading above the 100 period Simple Moving Average (SMA) on the four hour chart, but below the lower limit of the ascending regression channel. The Relative Strength Index (RSI) is above 50. The momentum is showing downside direction. The oscillator indicator is failing to provide any direction. The resistance is at 1.2850 and 1.2500 is immediate support.
From fundamental perspective, the US Dollar (USD) gathered strength against its major rivals with the knee-jerk reaction to the December jobs report but failed to preserve its bullish momentum. The disappointing ISM Services PMI and the underlying details of the labour market data didn’t allow market to scale back bets on a Federal Reserve policy pivot in March. Nonfarm Payrolls in the US rose by 216000 in December surpassing the market expectation for an increase of 170000. The Unemployment Data is printed 3.7%.
In conclusion, the GBPUSD currency pair is currently trading in a range. The technical indicator is providing mixed signals. The downside direction will resume once it breaks 1.2500.