Market Research and Analysis

Daily Market Analysis Report

Thu, 22 Dec 2016 04:06 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 1.2352, down -0.08% on the day, having posted a daily high at 1.2392 and low at 1.2324. The pair is trading sideways in a tight range on the 1.23 handle, merging the forceful move by the bears after the FOMC meeting a week ago. Sterling had generally been making a solid return late October exchange from underneath the 1.21 handle up to 1.2770. The greenback is back in the driving seat post Trump and the Fed and Brexit concerns are returning to the frontal area for 2017.

22-dec-gbp
Fundamental Overview

The data in this bulletin presents the latest fiscal position of the UK public sector as at 30 November 2016 and so includes 5 months of post-EU referendum data. However, care should be taken when interpreting short-term trends as movements in the public sector finances are driven by a large number of factors. Public sector net borrowing (excluding public sector banks) decreased by £7.7 billion to £59.5 billion in the current financial year-to-date (April to November 2016), compared with the same period in 2015.

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

GBP

  • GfK Consumer Confidence

USD

  • Core Durable Goods Orders m/m
  • Final GDP q/q
  • Unemployment Claims
  • Durable Goods Orders m/m
  • Final GDP Price Index q/q
  • HPI m/m
  • Core PCE Price Index m/m
  • Personal Spending m/m
  • CB Leading Index m/m
  • Personal Income m/m
  • Natural Gas Storage

Technical Overview

On Thursday, the GBPUSD traded mostly unchanged at 1.2366, still 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 1.2325.

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