GBP/USD struggles to find direction, holds steady near 1.2550

GBP/USD consolidates in a range at around 1.2550 on Tuesday after closing in negative territory on Monday. The US Dollar preserves its strength and makes it difficult for the pair to gain traction as trading conditions thin out on Christmas Eve.

The Relative Strength Index (RSI) indicator on the 4-hour chart moves sideways below 50 and GBP/USD trades slightly below the 20-period Simple Moving Average (SMA), suggesting that the bearish bias remains intact, while lacking momentum.

In case 1.2550 (static level) continues to act as resistance, technical sellers could remain interested. In this scenario, 1.2480 (static level) and 1.2400 (static level, round level) could be seen as next support levels. On the upside, resistances align at t 1.2600-1.2610 (static level, 50-period SMA) and 1.2670 (100-period SMA).

GBP/USD moves sideways in a tight range below 1.2550 in the European morning on Tuesday after posting small losses on Monday. The pair is likely to have a hard time finding direction in the near term, with trading conditions remaining thin heading into the Christmas holiday.

The US Dollar held its ground on Monday but struggled to gather strength following mixed macroeconomic data releases from the US. 

The US Census Bureau announced that Durable Goods Orders declined by 1.1% on a monthly basis in November, coming in worse than analysts' estimate for a decrease of 0.4%. Meanwhile, the Conference Board's Consumer Confidence Index worsened to 104.7 in December from 112.8 (revised from 111.7) in November. On a positive note, New Home Sales rose by 5.9% in November after the 14.8% decrease recorded in October.

The economic calendar will not feature any macroeconomic data releases until Thursday. Bond and stock markets in the US will operate half day on Tuesday and remain closed on Christmas Day on Wednesday.