Market Research and Analysis

Daily Market Analysis Report

Fri, 16 Dec 2016 03:50 AM GMT

Author: Senior Forex Analyst, Arslan Ali Butt

  • Daily Trading Range:
  • 1.2625 – 1.2250
  • Support & Resistance Levels:
  • R3: 1.2646
    R2: 1.2572
    R1: 1.2527
    Pivot Point: 1.2454
    S1: 1.238
    S2: 1.2335
    S3: 1.2262
  • Trading Recommendation:
  • Sell Below: 1.2450
    Take Profit:
    1st @ 1.2350
    Stop Loss @ 1.2480

GBPUSD

GBPUSD also traded bearish at 1.2409 while maintaining a bearish momentum for the consecutive 3rd day. On Thursday, the US Dollar got stronger on the exceptionally strong economic releases. The Philadelphia Manufacturing Business came out as 21.5 up beating the expectation of 9.1. Further, the Bank of England kept the official bank rate at 0.25% and the there was no surprise with the votes.

16-dec-gbp
Fundamental Overview

The Bank of England kept its key interest rate at a record low and noted that the pound’s recent appreciation may mean a slower pickup in inflation next year. In its last policy decision of 2016, the Monetary Policy Committee said sterling’s advance could mean “less of an overshoot” above its 2 percent goal than previously predicted. It still sees a pickup in price growth and repeated its line that it has limited tolerance for exceeding its target. Emphasizing its balancing act between managing inflation and growth, the MPC also said the economy will cool in 2017 as consumer spending weakens.

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

GBP

  • CBI Industrial Order Expectations
  • BOE Quarterly Bulletin

USD

  • Building Permits
  • Housing Starts
  • TIC Long-Term Purchases

Technical Overview

On Thursday, the GBPUSD kept trading below a trading range of 1.2585 – 12535 along with the RSI value below 50 and shifting below to 43, demonstrating a bearish mode of the pair. In long term perspective, the pair is maintaining the same trading range of 1.2650 – 1.2300. GBPUSD can find resistance at 1.2460 and 1.2525. Whereas, the supports remains at 1.2380 and 1.2340 on Friday.

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