GBP/USD – Can we see a breakout?

Last week could have provided the catalyst for some big moves in the currency markets but it seems to have passed many of them by.

GBPUSD had been preparing for potential volatility and instead what we got was largely predictable – BoE moved a little sooner but the outlook is as it was, and the Fed did what we all expected it to.

Which has left the cable pair trending sideways into the new year, albeit with solid support below around 1.3175. A break below here could reinvigorate the sell-off and make for an interesting year-end.

A move through 1.3275/1.33 could trigger an interesting move to the upside, although the big test here is 1.34 where the 200/233-period SMA on the 4-hour chart could look to cap any recovery attempts.

A breakout in either direction would certainly be interesting this side of the new year but may be more likely on the other.

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