GBP/USD Analysis: Performance Portends A Strong Move Ahead

According to the economic calendar data, the ISM Services Purchasing Managers’ Index came in at 52.1% in November, significantly lower than 56% in October and below expectations of 55.5%. The ISM stated that the repercussions of elections and tariffs were behind the more cautious sentiment. According to the announcement, components of employment, business activity, and new orders in the index declined compared to the previous month.Overall, the upward movement of the GBP/USD currency pair indicates that financial markets have become more confident that the US Federal Reserve will cut US interest rates this month, following this softer data. In this regard, several members of the Federal Open Market Committee have recently spoken, with most saying they will prefer to cut US interest rates if incoming data becomes weaker.
 Will the US Dollar Continue to Rise?According to reliable trading platforms, the US dollar outperformed in October and November on the back of a series of economic data that came in above expectations, confirming that the US economy is in a strong position. As a result, the data prompted investors to lower their expectations for the extent of US interest rate cuts by the Federal Reserve, boosting US bond yields and the dollar. However, sentiment towards the US dollar is approaching high levels, making the currency vulnerable to a decline in the event of setbacks in the data.
 UK Stock Indices Witness a DeclineAccording to stock trading companies’ platforms…. In yesterday’s trading session, the FTSE 100 index of British shares closed down about 0.3% at 8336, breaking a days-long upward trend, in contrast to the performance of the rest of the European stock markets. According to the trading, shares of AstraZeneca, the largest company in the index, led the losses with a decline of about 3%, after HSBC lowered its target price and announced the new “International Executive Vice President” to succeed Yun Wang, who is under investigation and is currently detained in China.
 Danske Bank Recommends Buying the Pound Sterling Against the DollarAccording to stock trading platforms, the FTSE 100 index closed by about 0.3% at 8,336 yesterday, breaking a multi-day upward trend, contrary to the performance of other European stock markets. According to trades, shares of AstraZeneca, the largest company in the index, led the losses with a decline of about 3%, following a price target cut by HSBC and after the announcement of a new “international executive vice president” to replace Leon Wang, who is currently under investigation and detained in China.Overall, the bank is expected to avoid cutting interest rates again at its December policy meeting, while both the Federal Reserve and the European Central Bank are likely to cut their benchmark interest rates. However, Danske Bank believes that the GBP/USD recovery is coming and sets a target of 1.33 for its buy recommendation.
 Trading Tips:Dear reader, Forex investors are certainly waiting for a strong stimulus for the pound to start its rise. Furthermore, this requires weaker US economic figures with the anticipation of US jobs tomorrow and the return of investor confidence in risk appetite, which supports the pound’s gains. Be careful, the GBP/USD pair is trying to regain the rise but lacks sufficient momentum.
 Technical Analysis for the GPB/USD pair today:Dear follower of TradersUp website, it is noticeable, according to the performance on the daily chart above, that the price of the British pound against the US dollar GBP/USD pair is still in a downward trend and moving for several trading sessions in narrow ranges, indicating a strong upcoming move, but awaiting factors to move. The opportunity may be stronger at the end of the week’s trading with the announcement of the US jobs numbers, which will have a reaction to the future of the US Federal Reserve’s policies in the coming months, especially under Trump’s leadership.Currently, the support levels of 1.2625 and 1.2500 will remain the most important for the bears to have strong and continuous control over the trend, and from the last and lowest level, the technical indicators will move towards strong oversold levels. The direction of both the Relative Strength Index (RSI) and the MACD indicators has become upward, but more stimulus is awaited to confirm the upward shift. Finally, this requires the bulls to move towards the resistance levels of 1.2830 and then the psychological resistance of 1.3000, respectively.More By This Author:EUR/USD Analysis: Holds Near 1.05EUR/USD Analysis: Continues Its Bearish TrajectoryEUR/USD Analysis: Faces Downward Pressure