GBP/USD stuck at 50-DMA hurdle in Asia

The corrective move in GBP/USD from Monday’s low of 1.2355 did gather pace in Asia, but failed to chew through 50-DMA hurdle of 1.2417 levels.

Offered at 5-DMA

The spot was offered at a 5-DMA level of 1.2501 on Monday, following which it breached 50-DMA support and dropped to a low of 1.2355. Moreover, Monday’s close was below the 50-DMA level.

Trading volumes are thin and expected to drop further in the run up to Christmas. The data docket in the UK and UK is thin.

GBP/USD Technicals

The pair is oversold as per the hourly FXStreet OB/OS index. The Trend index is bullish, while the Volatility index is low. On a larger timeframe - Daily chart - the pair is Neutral as per OB/OS index.

The pair was last seen trading around 1.2404. A break above 1.2417 (50-DMA) would open doors for 1.2451 (5-DMA). Further gains could run into resistance at 1.2536 (10-DMA).

On the lower side, a failure to hold above 1.24 could yield a revisit to 1.2355 (Monday’s low), under which the losses could be extended to 1.23 (zero figure).