GBP/USD still limited by 1.2500

GBP/USD is about to end the day marginally higher, as it trader around 1.2450. The pair during the European session gained momentum, but again, found resistance below 1.2500. That area continues to be a relevant level in the short-term. 

Volatility remained low during all day, amid a low volume session. In the US is Thanksgiving and many investors will return on Monday so tomorrow could also be a quiet session. 

On Friday, during the European session, in the UK a new estimation of Q3 GDP growth will be released. Expectations point to a 0.5% growth and an annual rate of 2.3%. No economic reports will be released in the US. 

Technical outlook 

According to Valeria Bednarik, Chief Analyst at FXstreet, the short-term picture for GBP/USD is neutral. “In the 4-hours chart, the price is struggling around a flat 200 EMA, while technical indicators are hovering around their mid-lines with no certain directional strength. In the same chart, the 20 SMA heads modestly higher, although the price has been drifting below it for most of the past two days”. 

She notes that the pair seems to have found a comfort zone between 1.2300 and 1.2520. “It will take a break of any of such extremes to see the pair finding some directional strength”, concluded Bednarik. 

To learn more about this topic, check our video analysis.

GBPUSD from Tip TV Productions on Vimeo.