Comprehensive GBP/USD Analysis for December 13, 2023

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the GBP/USD for 13th December 2023. 

GBP/USD Key Takeaways 

• Short-term pressure on the pound: UK wage growth slowed slightly to 7.3%, a larger-than-expected decline. Inflation expectations are on the decline, and the pound is under short-term pressure. 
• GBP/USD has momentum to rise: Even if the fall in inflation expectations may lead to an earlier rate cut by the Bank of England, UK inflation has a higher starting point and there is less evidence of a slowdown in core and service inflation so far, which makes the Bank of England expected to cut interest rates later than the Fed or Europe. The difference  will be positive for the pound. 

GBP/USD Technical Analysis 

GBP/USD Daily Chart Insights

• Stochastic Oscillator: The indicator is in a downward trend, but the exchange rate has not fallen rapidly, suggesting that the current price is in a correction. After waiting for the indicator to send a long signal, you can focus on long opportunities. 
• Support level: The exchange rate correction is close to the 200-day moving average, and this area is also along the upward channel line. The market may stop falling and restart the upward trend. 

GBP/USD 1-hour Chart Analysis

• Stochastic oscillator: After the indicator sent out a long signal, it fluctuated under pressure below the 50 mid-line, indicating that the current direction is unclear and it is still in an oscillating trend. 
• Price Action: After the exchange rate touched the 200-period moving average yesterday, it fell rapidly and closed with a pin bar. The high point of this pin bar is the potential dividing point. If the exchange rate breaks through this price, the bullish trend will be clear, otherwise the market will always be in an adjustment trend. 

Ultima Markets MT4 Pivot Indicator

• According to the pivot indicator in Ultima Markets MT4, the central price of the day is established at 1.25638, 
• Bullish Scenario: Bullish sentiment prevails above 1.25638, first target 1.26139, second target 1.26655; 
• Bearish Outlook: In a bearish scenario below 1.25638, first target 1.25127, second target 1.24626. 

Conclusion