• GBP/USD initially gained on but reversed course as sellers emerged as risk-off sentiment drove investors towards safe-havens dollar.
• Trading volumes are expected to be light in the holiday-shortened week, with UK markets closing early on Tuesday and remaining shut on Wednesday for the New Year.
• The Bank of England implemented two interest rate cuts in 2024, totaling a 50 basis point reduction. Money market participants are now pricing in over 52 basis points of cuts in 2025.
•At GMT 19:00, Sterling was last down 0.11% on the dollar at 1.2555
• Immediate resistance is located at 1.2627 (38.2%fib), any close above will push the pair towards 1.2734(50%fib).
•Support is seen at 1.2496(23.6%fib) and break below could take the pair towards 1.2462(Lower BB).
Recommendation: Good to sell around 1.2570 with stop loss of 1.2660 and target price of 1.2450
