24/7 SUPPORT
Download App
Search
Popular Search
Published: 4 December 2025,05:42
Daily Market Analysis New
*Softer U.S. data has boosted expectations of a Fed rate cut, weakening the USD, while the BoE’s comparatively hawkish stance keeps Sterling supported.
*Stronger-than-expected PMI readings and easing stagflation fears have reinforced confidence in the UK’s economic backdrop.
*Markets have absorbed the Autumn Budget with relief, removing a key political overhang and supporting GBP’s continued outperformance.
The Pound Sterling has consolidated its position as one of the strongest performers in the G10 currency space in recent sessions, buoyed by a combination of supportive external dynamics and improving domestic fundamentals.
A primary catalyst has been the shifting monetary policy divergence between the Bank of England and the Federal Reserve. The recent soft U.S. ADP employment data has significantly bolstered market expectations for a Fed rate cut next week, applying broad downward pressure on the U.S. dollar. In contrast, the Bank of England maintains a relatively hawkish stance as it continues to grapple with above-target inflation, making Sterling an attractive destination for yield-seeking capital.
Domestically, concerns over a potential UK “stagflation” scenario have receded. Recent economic indicators, including better-than-expected PMI readings, suggest the economy is demonstrating resilience. This has improved confidence in the UK’s economic trajectory and the currency’s fundamental backing.
Furthermore, a key political overhang has been removed. The market has now largely absorbed the details of the UK Autumn Budget, with initial fears of aggressive tax hikes giving way to relief that the announced measures were less disruptive than some worst-case scenarios. This has alleviated a major source of uncertainty and selling pressure on the Pound.
The convergence of a softening dollar, a steadfast BoE, resilient UK data, and reduced fiscal uncertainty has created a potent supportive environment for Sterling, positioning it for continued relative strength in the near term.
Technical Analysis
The EUR/GBP pair has confirmed a decisive shift to a bearish near-term trajectory. After reaching a recent peak at the 0.8865 level, the pair subsequently established a pattern of consecutive lower highs and lower lows, signaling an exhaustion of prior bullish momentum and the initiation of a downtrend.
This bearish structure was reinforced by a decisive breakdown below the crucial liquidity and support zone around 0.8755. The breach of this level signifies a meaningful deterioration in the pair’s technical posture, invalidating previous consolidation and opening the path for further potential downside.
Momentum indicators corroborate the negative outlook. The Relative Strength Index (RSI) has declined toward oversold territory, reflecting persistent and strengthening selling pressure. Concurrently, the Moving Average Convergence Divergence (MACD) has completed a bearish crossover below its zero line, providing clear confirmation of the shift in underlying momentum.
The convergence of the bearish price pattern, the breakdown of key support, and aligned negative momentum readings presents a compelling bearish case. The 0.8755 level now becomes immediate resistance, with any technical rebounds likely to face selling pressure in this region. The pair’s trajectory is now contingent on its ability to hold below this threshold, with a sustained break potentially targeting the next significant support zone.
Resistance Levels: 0.8840, 0.8955
Support Levels: 0.8610, 0.8515
Trade forex, indices, metal, and more at industry-low spreads and lightning-fast execution.
Sign up for a PU Prime Live Account with our hassle-free process.
Effortlessly fund your account with a wide range of channels and accepted currencies.
Access hundreds of instruments under market-leading trading conditions.
Trading Platforms
Learn
About PU Prime
Corporate
Important Notice to Visitors
Our products and services are not offered or made available to residents of your jurisdiction. The information on this Website is not directed at persons in your jurisdiction and is not intended as an offer, solicitation, or promotion of our products or services to them.
By clicking “I Understand”, you acknowledge this notice and confirm that you are accessing this Website at your own initiative. Access to this Website does not mean that our products or services are available to you.
Important Notice
Please be advised that our products and services are currently unavailable to residents and entities located in the Philippines.
This restriction is a result of our firm commitment to adhering to applicable legal and regulatory requirements in all jurisdictions where we operate. In line with our internal compliance protocols and evolving global standards, we continuously assess and update access to our platform to ensure full regulatory alignment.
We appreciate your understanding and cooperation.
If you believe this restriction has been applied in error, please contact our support team for further assistance.
Dear Valued Client,
As part of PU Prime’s ongoing commitment to providing a stable and reliable trading environment, please be informed of the following weekly weekend scheduled optimisation activities:
We sincerely apologise for any inconvenience this may cause as we strive to provide you with better service. PU Prime is committed to providing you with the best trading experience and this Weekly Scheduled Optimisation Notice will enable us to ensure that you trade without any unexpected interruptions.
For other upgrades that may involve longer disruptions to your trading, we will announce them ahead of time in a separate announcement.
Important Notice:
Important Notice: Please note the Website is intended for individuals residing in jurisdictions where accessing the Website is permitted by law.
Please note that PU Prime and its affiliated entities are neither established nor operating in your home jurisdiction.
By clicking the "Acknowledge" button, you confirm that you are entering this website solely on your own initiative and not as a result of any specific marketing outreach. You wish to obtain information from this website which is provided on a reverse solicitation basis in accordance with the laws of your home jurisdiction.
Important Notice:
Please note the Website is intended for individuals residing in jurisdictions where accessing the Website is permitted by law.
Please note that PU Prime and its affiliated entities are neither established nor operating in your home jurisdiction.
By clicking the "Acknowledge" button, you confirm that you are entering this website solely based on your initiative and not as a result of any specific marketing outreach. You wish to obtain information from this website which is provided on reverse solicitation in accordance with the laws of your home jurisdiction.
Aviso importante:
Ten en cuenta que el sitio web está destinado a personas que residen en jurisdicciones donde el acceso al sitio web está permitido por la ley.
Ten en cuenta que PU Prime y sus entidades afiliadas no están establecidas ni operan en tu jurisdicción de origen.
Al hacer clic en el botón "Aceptar", confirmas que estás ingresando a este sitio web por tu propia iniciativa y no como resultado de ningún esfuerzo de marketing específico. Deseas obtener información de este sitio web que se proporciona mediante solicitud inversa de acuerdo con las leyes de tu jurisdicción de origen.
