Market Research and Analysis

Daily Market Analysis Report

Thu, 15 Dec 2016 04:00 AM GMT

Author: Senior Forex Analyst, Arslan Ali Butt

  • Daily Trading Range:
  • 1.2725 – 1.2350
  • Support & Resistance Levels:
  • R3: 1.2797
    R2: 1.2723
    R1: 1.2677
    Pivot Point: 1.2602
    S1: 1.2528
    S2: 1.2482
    S3: 1.2407
  • Trading Recommendation:
  • Sell Below: 1.2590
    Take Profit:
    1st @ 1.2480
    Stop Loss @ 1.2620

GBPUSD

GBPUSD fell pointedly to hit crisp every day lows as the automatic response to Fed’s choice to climb rates by 25 bps as broadly anticipated. The Federal Reserve raised the objective for the fed assets to 0.5-0.75% on Wednesday while the spot plot uncovered individuals figure 2 to 3 climbs in 2017. Four of 17 authorities are anticipating a half-point over the span of 2017 while 6 figure 75 premise focuses worth.

15-dec-gbp
Fundamental Overview

Between May to July 2016 and August to October 2016, the quantity of individuals in work was minimal changed, the quantity of unemployed individuals diminished, and the quantity of individuals not working and not looking for or accessible to work (monetarily inert) expanded. There were 31.76 million individuals in work, minimally changed contrasted with May with July 2016 however 342,000 more than for a year prior. There were 23.20 million individuals working all day, 235,000 more than for a year prior. There were 8.56 million individuals working low maintenance, 107,000 more than for a year prior.

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

GBP

  • Retail Sales m/m
  • MPC Official Bank Rate Votes
  • Monetary Policy Summary
  • Official Bank Rate
  • Asset Purchase Facility
  • MPC Asset Purchase Facility Votes

USD

  • CPI m/m
  • Core CPI m/m
  • Philly Fed Manufacturing Index
  • Unemployment Claims
  • Current Account
  • Empire State Manufacturing Index

Technical Overview

On Wednesday, the GBPUSD broke out of the trading range 1.2585 – 12535 along with the RSI value crossing above 50 and shifting below to 37 from the 57, demonstrating a bearish 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 1.2510 and 1.2460 on Thursday.

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