Market Research and Analysis

Daily Market Analysis Report

Tue, 13 Dec 2016 03:54 AM GMT

Author: Senior Forex Analyst, Arslan Ali Butt

  • Daily Trading Range:
  • 1.2725 – 1.2350
  • Support & Resistance Levels:
  • R3: 1.2779
    R2: 1.2729
    R1: 1.2697
    Pivot Point: 1.2646
    S1: 1.2596
    S2: 1.2564
    S3: 1.2513
  • Trading Recommendation:
  • Buy Above: 1.2650
    Take Profit:
    1st @ 1.2710
    Stop Loss @ 1.2635

GBPUSD

GBPUSD edged higher to trade bullish sharply at 1.2672, opposing its well-maintain 4 consecutive days bearish momentum on Monday. The USD weakened in the absences of any favorable fundamental, moreover the Federal Budget Balance released missing the expectation and the previous figures. Further, the demand for Sterling fueled after CB Leading Index m/m. The high to low movement 132 pips, with a daily high of 1.2698 and a low of 1.2565.

13-dec-gbp
Fundamental Overview

The Conference Board Leading Economic Index for the U.K. increased 0.1 percent in October to 113.3 (2010=100). The Conference Board Coincident Economic Index for the U.K. increased 0.2 percent in October to 108.3 (2010=100). The composite economic indexes are the key elements in an analytic system designed to signal peaks and troughs in the business cycle. The leading and coincident economic indexes are essentially composite averages of several individual leading or coincident indicators.

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

GBP

  • CPI y/y
  • PPI Input m/m
  • RPI y/y

USD

  • Import Prices m/m

Technical Overview

GBPUSD broke out of a consolidated trading range 1.2585 – 12535 along with the RSI value crossing above 50 and reaching the 60, demonstrating a bullish mode of the pair. In long term perspective, the pair is maintaining the same trading range of 1.2750 – 1.2500. GBPUSD can find resistance at 1.2697 and 1.2729. Whereas, the supports remains at 1.2645 and 1.2610 on Tuesday.

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