During the Asian session, the GBP/USD pair trades in different directions, holding close to 1.2165.
Market activity remains low as investors prepare for the Christmas holidays, not expecting strong drivers for the quotes movement this week. Meanwhile, the US dollar is under pressure from poor macroeconomic national statistics: data released yesterday reflected a drop in the dynamics of new home construction in November by 0.5%. The currency weakened after the US Fed started a gradual easing of the "hawkish" rhetoric: according to forecasts, the regulator will raise interest rates by 25.0 basis points in February and March, after which the cycle of monetary tightening may end.
The Bank of England is acting similarly, but at the latest meeting, the regulator confirmed that the country's economy went into recession in the fourth quarter, but growth is expected to recover towards the end of 2023 gradually. On Thursday, the UK will release renewed data on the dynamics of Q3 gross domestic product (GDP): the previous statistics showed a decline of 0.2% QoQ and an increase of 2.4% YoY. Meanwhile, Prime Minister Rishi Sunak said that the country would abandon the plans of his predecessor, Liz Truss, to buy energy resources from abroad, and the working group she created to conclude deals with foreign suppliers will be disbanded because, according to the politician, the government does not intend to interfere in the work world gas markets. Formerly the operator of the unified British power system National Grid Plc. published an emergency plan, including a mechanism for systematic three-hour blackouts in the event of a cold winter and the cessation of the supply of Russian gas.
On the daily chart, Bollinger bands are moving flat: the price range is practically unchanged, remaining quite spacious for the current level of activity in the market. The MACD indicator is falling, keeping a poor sell signal (the histogram is below the signal line). Stochastic, having reversed at zero, maintains an active upward direction, signaling in favor of the development of corrective growth in the ultra-short term.
Resistance levels: 1.2240, 1.2311, 1.2400, 1.2500. | Support levels: 1.2150, 1.2084, 1.2027, 1.1939.