GBPUSD Chart Technical Outlook

GBPUSD Chart Technical Outlook Bull’s eye 1.2826 after upbeat UK GDP and markets shrugging off of stubborn US inflation data.

The UK economy grew by 0.3% in November, beating estimates of 0.2% and keeping hopes that Britain escaped a technical recession. While there is high uncertainty about 2024, I expect optimism to keep the Pound bid.

GBP/USD also benefits from US Dollar weakness. Despite hotter-than-expected US CPI data, markets remain optimistic about rate cuts from the Federal Reserve, and this pushes bond yields down, dragging down the Greenback. 

GBP/USD faces resistance at 1.2788, followed by 1.2826, which was the late December peak. Support is at 1.2695, the recent low, followed by the triple bottom of 1.2618. The broad trend remains to the upside, despite the recent consolidation period.

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