On Monday, the US dollar was mostly steady against most of its peers over ongoing fundamentals, especially intensified concerns over a partial US government shutdown and tension between the White House and the Federal Reserve. Moreover, the US-China trade war concerns are slightly cooling down and that has lent support to the equity market and has a bearish impact on gold.

Speaking of fundamentals, the market isn’t expected to release any major event as financial institutions are closed in observance of New Year’s Eve. Forex brokers are open but will close trading services early today.

GBP/USD – Housing Equity Withdrawal Up Next

On the 4 -hour chart, the cable violated the psychological resistance level of $1.2700 to come out of the bearish channel. Looks like the pair is taking a bullish reversal to test the next resistance level at $1.2760. But we can’t say much as the volatility remains low due to the holiday season.

Technically, GBP/USD is likely to face a strong resistance near $1.2760, which is extended by 50 periods EMA. The pair is already above double top resistance at $1.2685, which is now working as support.

Potential Economic Events to Impact

The UK will release the latest report on Housing Equity Withdrawal from the Bank of England. It’s a leading indicator of the housing market which shows a change in the total value of new home-secured loans that are not used for home purchases or improvements.

The data is due at 9:30 (GMT), and economists are expecting a better figure of -6.0B vs. -6.3B in October 2018. Honestly, I’m not expecting any solid move on the release, yet it’s worth watching the figure as it’s the only one on the docket today.

Daily Technical Levels

Support    Resistance
1.2653       1.2726
1.2607       1.2754
1.2534       1.2827
Key Trading Level: 1.2681

GBP/USD – Trade Plan

Today, the idea is to stay bullish above 1.2680 to target 1.2780. While the selling is preferred below 1.2675 today.

Good luck!