Last week, the GBP/USD pair fell to 1.1990. The last factor of pressure on the pound was the data on the Gross Domestic Product (GDP) of Great Britain for the third quarter. Due to a decline in the industrial and construction sectors, as well as a reduction in investment in business, the British economy corrected by -0.3% instead of the expected -0.2%, showing the weakest results among the G7 countries. In turn, the US economy over the same period grew by 3.2% instead of 2.9%, which only increased pressure on quotes.
Today, the price is making an attempt to grow, which experts attribute to the decision of the Chinese authorities to lift the quarantine for arriving citizens of other countries from next week. These measures should help increase the flow of tourists to the country and further stimulate the recovery of the national and global economy.
In general, the movement potential of the GBP/USD pair this week seems to be limited due to the declining activity of investors on the eve of the New Year holidays.
At present, the price is in the area of 1.2100, but for a significant continuation of the growth, the quotes will have to consolidate above 1.2207 (the center line of Bollinger Bands, Murray [6/8]). In this case, the price will be able to rise to the levels of 1.2451 (Murray [7/8], Fibonacci retracement 50.0%) and 1.2700 (Murray [8/8]). The key point for the "bears" seems to be 1.1962 (Murray [5/8], the lower line of Bollinger Bands). Its breakdown will give the prospect of further decline to the levels of 1.1718 (Murray [4/8]) and 1.1540 (Fibonacci retracement 23.6%).
The upward reversal of Bollinger Bands and Stochastic signals the continuation of the uptrend; however, MACD is decreasing in the positive zone, not excluding the continuation of the correction.
Resistance levels: 1.2207, 1.2451, 1.2700. | Support levels: 1.1962, 1.1718, 1.1540.