GBP/USD Price Forecast: Advances, yet remains below 1.2600
GBP/USD climbs as financial markets respond positively to Trump's choice for Treasury Secretary, Scott Bessent.
The pair still shows a downward trend, with key support being 1.2550 and 1.2486, potentially leading to a retest of the annual low at 1.2299.
If bulls move in, they could test 1.2600 and November's high of 1.2659, followed by the 200-day SMA at 1.2818.
The Pound Sterling advances modestly against the Greenback on Monday, with market participants digesting US President-Elect Donald Trump's naming of Scott Bessent as Treasury Secretary. Bessent, an advocate for lower taxes and tariffs, was well-received by the markets as risk appetite improved. The GBP/USD trades at 1.2586, up 0.52%.
GBP/USD Price Forecast: Technical outlook
Despite posting gains, the GBP/USD remains downward biased after slipping below the 200-day Simple Moving Average (SMA) at 1.2818. If buyers want to regain the control, they need to conquer the 1.2600 figure, followed by a clear break of November’s 21 peak at 1.2659, which could exacerbate a rally to 1.2700. On further strength, the 200-day SMA is up next.
Meanwhile, bears remain in charge, targeting 1.2550 as the first support level. Once surpassed, they will set their sights on the November 22 low of 1.2486, followed by the year-to-date (YTD) low of 1.2299.
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