GBPUSD

As we conclude 2024, the GBP/USD pair is stirred by unfavorable economic activities and the European Central Bank's interest rate policies. While the Euro's depreciation against other currencies in Europe and Trump's policies having a positive impact on the Dollar index are noteworthy, losses in the GBP/USD pair appear to be limited. The Dollar index is supported particularly by expectations of the Trump administration's return to power and the Fed's tight monetary policy, while in European markets, expectations of an ECB rate cut are gradually forming. Due to early closures in the UK and France, and New Year holidays in Germany, European markets may also experience a calm trajectory.

From a technical perspective, the GBP/USD pair is trapped between resistance levels of 1.2610 and 1.2665. In the short term, the pair has the potential to move downward, and in such a case, support levels of 1.2525, 1.2485, and 1.2445 can be monitored. The 1.2485 level stands out as a critical level for the continuation of the trend or the beginning of a possible recovery. The RSI indicator is in the neutral zone, and the pair's 0.00% change compared to the previous day indicates a calm market. This calmness, combined with low volume before the New Year, increases the uncertainty regarding the pair's direction.