GBP/USD steadies near 1.3300 as DXY holds above 96.00

December 19, 2021

GBP/USD erased the majority of its BOE-inspired gains on Friday and seems to have steadied around 1.3300 during the American trading hours. The dollar holds its ground ahead of the weekend, supported by risk-off flows.

With the initial reaction to the BOE’s hawkish policy outlook, GBP/USD jumped to its strongest level since November 24 at 1.3376 but the 200-period SMA on the four-hour chart acted as strong resistance near that level. If buyers manage to flip that level into support, the next target on the upside is located at 1.3400 (psychological level) ahead of 1.3460 (static level).

On the downside, interim support seems to have formed at 1.3300 (static level, psychological level) before 1.3270 (100-period SMA, 20-period SMA) and 1.3240 (50-period SMA).

GBP/USD erased the majority of its BOE-inspired gains on Friday and seems to have steadied around 1.3300 during the American trading hours. The dollar holds its ground ahead of the weekend, supported by risk-off flows.https://t.co/hjw6Kg1szU pic.twitter.com/Bs1JzyvEi8

— 360ForexSignals.com (@petromenea) December 19, 2021