- Summary:
- The GBP/USD is in a tight range today but the bearish flag pattern on the four-hour chart hints at a potential pullback today
The GBP/USD pair is little changed today ahead of the important UK services PMI data and the outcome of the Georgia runoff election. The GBPUSD pair is trading at 1.3610, which is slightly above yesterday’s low of 1.3544.
What happened: The biggest driver for the GBP/USD pair today will be the outcome of the Georgia Senate by-election where the Republicans are facing off against the Democrats. As of this writing, the votes are still tight but there is a high possibility that Democrats will win the two races. This will give Joe Biden the votes that he needs to accomplish his agenda. Some of his proposals are on more regulations, higher corporate taxes, and higher wages. What else: The GBP/USD pair will also react to the UK services PMI numbers that will come out at 09:30 GMT. Economists expect the numbers to show that the services sector remained in contraction as the country continued to deal with the virus. Still, with the UK in lockdown, the situation could continue getting worse in the near term.
GBP/USD technical outlook
On the four-hour chart, we see that the GBPUSD pair has been in a tight range in the past few hours. It has bounced back from yesterday’s low of 1.3540 to the present level. It has also risen above the 25-day and 15- day moving averages.
Most importantly, it has formed a bearish flag pattern, which means that it will possibly resume the downward trend as bears aim for yesterday’s low at 1.3540. However, a move above 1.3650 will invalidate this trend.
GBP/USD chart
