GBPUSD: Consolidates Around 1.2670 Resistance…
As long as 1.2670 resistance holds on a daily closing basis, the GBPUSD remains neutral with risk to the downside. A failure to hold above 1.2670 level on a daily closing basis could mean a return to 1.2615 level where a cut will open 1.2559 level. Below 1.2559 restores the downside momentum and opens 1.2480 level, further down, support comes at 1.2402 level.
On the upside, the GBPUSD will have to break and hold above 1.2670 level on a daily closing basis to prevent a return to the downside. If seen it will target 1.2705/1.2756 levels. A halt is likely. But A break opens 1.2823 level, further upside, resistance comes at 1.2882 level.
Conclusion: The GBPUSD faces downside risk as long as trades below 1.2670 level on a daily closing basis. Above that level will challenge 1.2705/1.2756 levels.
Support: 1.2615, 1.2559, 1.2480, 1.2402
Resistance: 1.2670 (critical), 1.2705, 1.2756, 1.2823
Key data/events which may affect GBPUSD today:
The U.K will report on Retail Sales for Nov today at 09:30 GMT. The forecast is to rise 0.3$, from -0.5% a month earlier.
Later on the day at 12:00 GMT. The Bank of England will announce its latest monetary policy decision. The forecast is that the Central Bank will keep policy on hold. And keep short-term interest rates at 0.75%.