Market Research and Analysis

Daily Market Analysis Report

Wed, 21 Dec 2016 03:57 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: 1.2395
    Take Profit:
    1st @ 1.2325
    Stop Loss @ 1.2415

GBPUSD

GBPUSD is trading at 1.2347, down -0.40% on the day, having posted a daily high at 1.2418 and low at 1.2312. GBPUSD is making a minor recuperation in the US move having opened lower inside the fourteenth Dec and FOMC bear drift from the 1.2720. Examiners at Scotiabank contended that there are clear danger of facilitating further towards 1.21/1.22 in the following few days. “Slant oscillators are adjusted bearishly for the GBP over a scope of short, medium and longer-term time spans which suggests continuous descending weight on spot and restricted degree for GBP bounce back from here.

21-dec-gbp
Fundamental Overview

Retail sales growth accelerated in the year to December, with volumes rising at the fastest pace since September 2015, according to the CBI’s latest monthly Distributive Trades Survey. The survey of 112 firms consisting of 53 retailers showed that sales volumes for the time of year were considered well above average, but growth is expected to slow somewhat in the year to January. Meanwhile, orders placed on suppliers rose at the fastest pace in over a year, but are expected to be broadly stable in January.

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

GBP

  • Public Sector Net Borrowing

USD

  • Existing Home Sales

Technical Overview

GBPUSD traded mostly unchanged at 1.2377, consolidating in a narrow trading range of 1.2405 – 1.2310 along with the RSI value below 50, shifting to 37, demonstrating a bearish mode of the pair. The technical outlook for the pair remains bearish at its trading below 10 and 20 EMA. In long term perspective, the pair is maintaining the same trading range of 1.2650 – 1.2300. GBPUSD can find resistance at 1.2427 and 1.2475. Whereas, the supports remains at 1.2355 and 1.2310.

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