Breaking News
Investing Pro 0
Cyber Monday Extended SALE: Up to 60% OFF InvestingPro+ CLAIM OFFER

Pound Rises To 5-Week High

By Kenny FisherForexDec 29, 2021 10:35AM ET
www.investing.com/analysis/pound-rises-to-5week-high-200613058
Pound Rises To 5-Week High
By Kenny Fisher   |  Dec 29, 2021 10:35AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
GBP/USD
+0.31%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
DX
-0.32%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

The British pound has posted gains on Wednesday. Earlier in the day, GBP/USD touched 1.3480, its highest level since Nov. 19. This date was the last time that the pound was at the 1.35 line, a psychologically significant level.

The pound looked good last week, rising 1.18%, and the upward trend has continued into Christmas week. Sterling has benefited from stronger risk sentiment, which has led to a move away from the safe-haven U.S. dollar. The dollar index has dipped to 96.11, down 0.09% on the day, marking the fourth day of sideways trading. The index faces resistance at 96.30 and has support at 95.80.

Omicron Rages But Risk Appetite Remains Intact

When Omicron first appeared on the scene several weeks ago, there were dire predictions about the damage another wave of COVID would cause to the global economy. Omicron has spread very quickly across Europe and the U.S., but investors remain optimistic that although Omicron is much more contagious than Delta, the symptoms are milder. Still, with infection rates skyrocketing in the U.S. and Europe, there are fears that an Omicron wave could overwhelm hospitals, mostly with unvaccinated patients.

The World Health Organization has warned that Omicron could overload health systems, and France reported a new daily record of 180,000 newly confirmed cases. In the meantime, the markets are ignoring the explosion in Omicron cases, preferring to focus on the low hospitalization numbers. Still, in a week of illiquid markets, one negative headline about Omicron could put risk sentiment in the freezer and boost investor appetite for the safe-haven greenback.

GBP/USD Technical Analysis

  • GBP/USD has support at 1.3349 and 1.3261
  • There is resistance at 1.3462 and 1.3550

GBP/USD Daily Chart.
GBP/USD Daily Chart.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Original post.

Pound Rises To 5-Week High
 

Related Articles

Shane Neagle
Has the U.S. Dollar Officially Peaked? By Shane Neagle - Nov 29, 2022 7

The U.S. dollar is trading near multi-month lows against its major counterparts on expectations the Federal Reserve may slow down its hiking campaign. The pullback in the dollar...

Pound Rises To 5-Week High

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email