GBP/USD remains trapped in a frustrating range, with bulls unable to sustain gains above 1.26 and bears failing to push the pair below 1.25. This impasse has left the pair oscillating between the Nov. 22 low at 1.2475 and the falling 10-DMA at 1.2627. The Fed's November minutes later on Tuesday and U.S. data on Wednesday may provide catalysts, though any breakout is unlikely to hold ahead of the U.S. Thanksgiving holiday.
Technical Analysis and Key Levels
Technically, GBP/USD faces immediate resistance at 1.2568, with stronger barriers at 1.2616 (Tuesday high) and 1.2627 (10-DMA). Support lies at 1.2512 and 1.2475, the latter marking a 7-month low. A decisive break above 1.2627 could open the door to a test of 1.2713 (Nov. 20 high), while a move below 1.2475 might signal a deeper correction toward 1.2400.
Market Sentiment and Outlook
Market sentiment remains cautious as traders weigh Fed Chair Jerome Powell's recent comments about a slow easing path against the broader uncertainties of political and trade dynamics. Without a significant shift in U.S. data or a major surprise in the Fed minutes, GBP/USD is likely to remain rangebound, frustrating both bulls and bears.
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