- GBP/USD Overview: The GBP/USD pair has shown modest gains in recent days but struggled to maintain momentum, hovering around 1.2750.
- Market Focus: Market attention shifts to the US Consumer Price Index (CPI) report for November, which could influence the US Dollar’s direction.
- US Dollar Strength: Rising US Treasury yields and cautious market sentiment have supported the US Dollar, limiting further upside for GBP/USD.
- Consolidation Phase: GBP/USD remains in a consolidation phase, unable to break key resistance at 1.2800.
GBP/USD Forecast: Pivot Level Forms at 1.2750, Focus on US CPI
GBP/USD registered modest gains for the second consecutive day on Tuesday but lost momentum early on Wednesday, hovering around the 1.2750 mark as market attention shifts to the crucial November inflation report from the US.
The cautious market sentiment, coupled with rising US Treasury bond yields, provided support to the US Dollar (USD) on Tuesday, making it challenging for GBP/USD to extend its rally. As of Wednesday morning, the USD remains resilient against its counterparts, with US stock index futures showing mixed movements.
GBP/USD Struggles as Pound Fails to Attract Bullish Momentum
GBP/USD tested 1.2800 on Monday but was unable to break through that resistance level for the second day in a row. The pair remains in a consolidation phase around 1.2750 early on Tuesday.
The shift in risk sentiment during Monday's session supported the US Dollar, causing GBP/USD to reverse its earlier gains. Wall Street's main indexes closed lower, losing between 0.5% and 0.8% on the day. As of Tuesday morning, US stock index futures are trading mixed, keeping the focus on the upcoming US CPI data.
