Market Research and Analysis

Daily Market Analysis Report

Fri, 09 Dec 2016 03:47 AM GMT

Author: Senior Forex Analyst, Arslan Ali Butt

  • Daily Trading Range:
  • 1.2725 – 1.2350
  • Support & Resistance Levels:
  • R3: 1.2769
  • R2: 1.2709
  • R1: 1.2672
  • Pivot Point: 1.2613
  • S1: 1.2553
  • S2: 1.2516
  • S3: 1.2457
  • Trading Recommendation:
  • Sell Below: 1.2615
  • Take Profit:
  • 1st @ 1.2535
  • Stop Loss @ 1.2635

GBPUSD

GBPUSD is trading bearish at 1.2588, expedited losses and split below the 1.26 mark as well as the 10 Day’s SMA to place new weekly lows in the 1.2550 area amid sharp strength in the USD. The strength in Greenback picked up across the market as the European Central Bank remained dovish with its policy decision. Whereas the high to low movement 125 pips, with a daily high of 1.2745 and a low of 1.2548.

9-dec-gbp
Fundamental Overview

Survey in brief Interest from new buyers increases marginally for the third consecutive month Activity moves up but figures are consistent with only modest increase in near-term transactions Supply chain continues to stagnate with no increase in supply for the ninth consecutive month Where are the new buyers? The number of prospective buyers in the UK housing market has increased for the third consecutive month in November, but the figure remains historically low with 13% more surveyors reporting a rise in new buyer enquiries rather than a fall.

Today on Friday, the investors are recommended to monitor the following events:

GBP

  • Goods Trade Balance
  • Construction Output m/m
  • Consumer Inflation Expectations

USD

  • Prelim UoM Consumer Sentiment
  • Final Wholesale Inventories m/m
  • Prelim UoM Inflation Expectations

Technical Overview

GBPUSD traded bearish at 1.2585 with a good shift in the value of RSI to 42 from 52 previously.  Overall, the pair is maintaining the same trading range of 1.2750 – 1.2550. GBPUSD can find resistance at 1.2605 and 1.2640. Whereas, the supports remains at 1.2565 and 1.2535 on Friday.

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