Sterling prevailed to maintain above the 1.25 level for the week, not after the Bank of England MPC came to agreement and decided to keep the rate unchanged at 0.10%. Also, the central bank promised to inject £100 billion more to its quantitative easing program and with this double-down effect, had their currency dive deeper to two-and-a-half week low, just managed to hang above 1.24.

The pair has been trading rather sideways throughout the week, until it experienced a relatively big dip. Now back to its flat trend just above next support level which it has been testing after the fall. It’s hard to determine whether it will go south or north based on just fundamentals however, technically shows difficulty for the cable to pick back up in the near future. Not to mention the inconsistent pressure from Brexit, by the latest on 31 Dec the E.U will impose full customs control and it remains controversial about the outcome, which will largely shape the trend for the pound.

Daily pivot point 1.2464

S1 – 1.2367 R1 – 1.2525

S2 – 1.2305 R2 – 1.2622

S3 – 1.2146 R3 – 1.2781

Short term bearish outlook could enter short at 1.2437, with stop loss at 1.2493 and take profit at 1.2384.

Analyzed by: Mr. Ronald Wu  Financial Analyst