News
7x24
Quotes
Economic Calendar
Video
Data
- Names
- Latest
- Prev.
Key Support Retest May Ignite the Next Bullish Expansion
Central Bank
Economic
Summary:
This specific price zone is attracting significant interest because it represents a classic support-resistance flip.
Buy
CLOSEDGBPUSD
End Time
1.34539
Entry Price
1.35600
TP
1.34100
SL
1.34721 +0.00046 +0.03%
439
Points
Loss
1.34100
SL
1.34100
CLOSING
1.34539
Entry Price
1.35600
TP
The U.S. Bureau of Economic Analysis reported that the domestic economy expanded at a robust annualized rate of 4.3% in the third quarter. This figure significantly outperformed market expectations of 3.3% and surpassed the previous estimate of 3.8%. Accompanying this strong growth, inflation metrics within the Gross Domestic Product (GDP) report remained firm: the GDP Price Index rose by 3.7%, while Personal Consumption Expenditures (PCE) increased by 2.9%, with core PCE prices climbing 2.8%.
Despite this vigorous growth, the manufacturing sector exhibited signs of cooling. Durable Goods Orders fell by 2.2% in October, reversing a prior gain of 0.7%. Excluding defense, orders dropped by 1.5%, and while orders excluding transportation saw a marginal 0.2% increase, overall Industrial Production slipped by 0.1% month-over-month. In contrast, the housing market showed unexpected strength; data from the National Association of Realtors revealed that Pending Home Sales rose by 3.3% in November, marking their highest level since early 2023.
The Federal Reserve reduced the federal funds rate by 25 basis points (bps) at its December meeting, bringing the target range to 3.50%–3.75%. This marks a cumulative reduction of 75 bps in 2025 as the central bank navigates a cooling labor market and persistent inflation. According to the CME FedWatch Tool, markets are now pricing in an accelerated easing cycle, with traders anticipating at least two additional cuts by the end of September 2026.
Market participants anticipate that the Bank of England (BoE) will adopt a cautious approach toward monetary easing throughout 2026. In its most recent meeting, the institution cut interest rates by 25 basis points, bringing the rate to 3.75%, while making it clear that any further adjustments would be implemented progressively.
This moderate stance is closely linked to the fact that inflation in the United Kingdom remains uncomfortably elevated. Although the headline index retreated to 3.2% in November from its September peak of 3.8%, it remains significantly above the central bank’s 2% target. BoE Governor Andrew Bailey recently suggested that the room for maneuver regarding further cuts may narrow as the policy stance approaches neutral levels. Consequently, future decisions will be heavily contingent on the evolution of macroeconomic data.
Looking toward 2026, the BoE’s trajectory will be strictly tied to the performance of the British labor market and Gross Domestic Product (GDP). Throughout 2025, employment demand remained soft as many firms chose to halt hiring to offset the increase in social security contributions—a structural factor that could continue to hinder overall economic growth.
Technical Analysis
The GBP/USD pair recently retraced to the 200-period Moving Average (MA), currently situated at 1.3452. This specific price zone is attracting significant interest because it represents a classic support-resistance flip; a level that previously functioned as a ceiling is now being tested as a technical floor.
The fact that this area is holding suggests that the prevailing bullish trend still possesses sufficient underlying strength to continue. On the 1-hour chart, the 100-period MA is located at 1.3500. When this level was breached to the downside, it effectively triggered the corrective move toward the 200-period MA. If this support holds firm, we could witness a renewed impulse toward the 1.3560 zone, which aligns with the 0.50 Fibonacci expansion. In technical terms, this means the next bullish leg could achieve a magnitude equal to 50% of the primary impulse.
Meanwhile, the Relative Strength Index (RSI) is rapidly approaching oversold territory, this condition could exert upward pressure, as the combination of key interest zones and momentum indicators suggest that the bullish trend remains the primary force. Notably, the RSI has shed significant levels even though the price has not made an equivalently large move to the downside, indicating exhaustion in the bearish momentum and granting bulls an opportunity to reclaim control. However, a forceful break below the current support level would clear the path for a deeper correction, putting the overall bullish trend in doubt.
Trading Recommendations
Trading direction: Buy
Entry price: 1.3454
Target price: 1.3400
Stop loss: 1.3560
Validity: Jan 09, 2025 15:00:00
Risk Warnings and Investment Disclaimers
You understand and acknowledge that there is a high degree of risk involved in trading with strategies. Following any strategies or investment methodologies is the potential for loss. The content on the site is being provided by our contributors and analysts for information purposes only. You alone are solely responsible for determining whether any trading assets, or securities, or strategy, or any other product is suitable for you based on your investment objectives and financial situation.
Quick Access to 7x24
Quick Access to More Editor-selected Real-time News
Exclusive video for free
FastBull project team is dedicated to create exclusive videos
Real-time Quotes
View more faster market quotes
More comprehensive macro data and economic indicators
Members have access to entire historical data, guests can only view the last 4 years
Member-only Database
Comprehensive forex, commodity, and equity market data
English
English
العربية
繁體中文
简体中文
Bahasa Melayu
Bahasa Indonesia
ภาษาไทย
Tiếng Việt
Copyright © 2026 FastBull Ltd
Home News Columns 7x24 Economic Calendar Quotes Video Data WarehouseAnalysis AI Signal Pro User Agreement Privacy Policy About Us
Risk Disclosure
The risk of loss in trading financial assets such as stocks, FX, commodities, futures, bonds, ETFs or crypto can be substantial. You may sustain a total loss of the funds that you deposit with your broker. Therefore, you should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.
No consideration to invest should be made without thoroughly conduct your own due diligence, or consult with your financial advisors. Our web content might not suit you, since we have not known your financial condition and investment needs. It is possible that our financial information might have latency or contains inaccuracy, so you should be fully responsible for any of your transactions and investment decisions. The company will not be responsible for your capital lost.
Without getting the permission from the website, you are not allow to copy the website graphics, texts, or trade marks. Intellectual property rights in the content or data incorporated into this website belongs to its providers and exchange merchants.