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Analysing the Latest Fundamental Shifts for GBP/USD and Our Trading Signals

Market Dynamics:

The GBP/USD pair witnessed a rebound, stabilising above the 1.2500 level after the previous session's decline. This recovery is influenced by a positive shift in the UK's economic outlook as reflected by the recent PMI readings, alongside a subdued USD demand during the US Thanksgiving holiday.


GBP/USD currency pair, A financial chart depicting the with technical indicators including candlesticks, Bollinger Bands, Ichimoku Cloud, and volume bars. The chart also features an RSI indicator below, signalling recent market volatility.

UK Economic Pulse:

The S&P Global/CIPS Composite PMI for the UK indicated a slight expansion in business activity, crossing the threshold of 50, signaling a move away from contraction territory. Manufacturing and Services PMI also showed an uptick, contributing to the Sterling's attractiveness.


US Influence:

The USD's performance has been tempered by lower market participation due to the holiday, despite a strong showing in unemployment claims which hit a low since October.


Trading Signal Update:

  • Pair: GBP/USD

  • Trade Direction: BULLISH

  • Trade Probability: 65%

  • Yesterday's Trend: The pair recovered from a dip, indicating a bullish sentiment.

  • Pivot Point: 1.2500

Indicators:

  • Volatility: Expected to be moderate, with possible spikes due to low liquidity.

  • Moving Average (MA): The pair is trading above the short-term MA, signaling bullish momentum.

  • Ichimoku: The price is above the cloud, indicating a potential upward trend continuation.

  • RSI: Hovering around the mid-level, suggesting room for upward movement.

  • Bollinger Bands: The price is challenging the upper band, which may act as a dynamic resistance.

🎯 Targets for Taking Profits:

  • Buy: Aim for profit-taking near the 1st Resistance (R1) at 1.2550, 2nd Resistance (R2) at 1.2600, and 3rd Resistance (R3) at 1.2650.

❌ Stop Loss Guidelines:

  • Buy: Place stop loss below a firm support level, suggested at 1.2450.

Conclusion:

The recent UK economic data has provided a lift for the GBP, with PMI figures suggesting a brighter economic landscape. For today's trading, the bias is BULLISH, supported by technical indicators and market mood. Traders should monitor for changes in volatility and liquidity due to the US holiday, which could affect price movements.



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