HG MARKETS:

The GBP/USD pair faced mild pressure today, trading around 1.21820 as mixed UK economic data weighed on sentiment. November saw a modest GDP growth of 0.1%, but industrial production dropped by 0.4%, reflecting the continued challenges facing the UK economy. Retail sales also declined by 0.3%, falling short of the 0.4% forecast, which added to concerns about the strength of the UK’s recovery. These disappointing figures renewed speculation about potential rate cuts by the Bank of England, further clouding the outlook for the currency pair.

The weaker-than-expected economic data has raised doubts over the Bank of England’s future policy moves, with market participants increasingly pricing in the possibility of a dovish shift. The uncertainty surrounding rate cuts has weighed on the GBP/USD, with traders awaiting further clarity from upcoming UK economic indicators.

From a technical perspective, the GBP/USD pair is currently trading at $1.21820, down by 0.43%, signaling continued bearish momentum. The pair remains below the key pivot level of $1.23056, which has acted as a significant barrier for any potential upward movement. Immediate resistance is found at $1.24402, aligning with a downward trendline, which reinforces the ongoing selling pressure. A further resistance level is observed at $1.25827, highlighting the challenges the pair faces in mounting any sustained rally.

On the downside, support is located at $1.20987, with deeper levels at $1.19575, suggesting that there is potential for extended losses if the pair continues its current trajectory. The 50-day EMA at $1.22742 underscores short-term resistance, while the 200-day EMA at $1.24905 confirms the broader bearish structure. A move below $1.23056 may lead to further declines, while a break above could spark renewed bullish interest.