GBP/USD – Can we see a breakout?

Last week could have provided the catalyst for some big moves in the currency markets but it seems to have passed many of them by.

GBPUSD had been preparing for potential volatility and instead what we got was largely predictable – BoE moved a little sooner but the outlook is as it was, and the Fed did what we all expected it to.

Which has left the cable pair trending sideways into the new year, albeit with solid support below around 1.3175. A break below here could reinvigorate the sell-off and make for an interesting year-end.

A move through 1.3275/1.33 could trigger an interesting move to the upside, although the big test here is 1.34 where the 200/233-period SMA on the 4-hour chart could look to cap any recovery attempts.

A breakout in either direction would certainly be interesting this side of the new year but may be more likely on the other.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Craig Erlam

Craig Erlam

Senior Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam
Craig Erlam

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