Daily Market Analysis Report
Fri, 23 Dec 2016 04:19 AM GMT
Author: Senior Forex Analyst, Arslan Ali Butt
- Daily Trading Range:
- 1.2625 – 1.2250
- Support & Resistance Levels:
- R3: 1.2646
Pivot Point: 1.2454
- Trading Recommendation:
- Sell Below: 1.2295
1st @ 1.2235
Stop Loss @ 1.2315
GBPUSD pair blurred an intraday bullish spike to session abnormal state of 1.2378 and floated into negative domain for the fourth continuous session. Presently exchanging around 1.2340-45 area, having posted a session low at 1.2328, the pair augmented its consolidative value activity and stayed topped underneath 50-day SMA, separate affirmation bolster. The pair, nonetheless, has possessed the capacity to hold its neck over 1.2300 handle as the US Dollar slipped more remote from 14-year highs, principally drove by benefit taking in front of essential US large scale economic releases.
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 Friday, the investors are recommended to monitor the following events:
- Current Account
- Final GDP q/q
- Index of Services 3m/3m
- Revised Business Investment q/q
- New Home Sales
- Revised UoM Consumer Sentiment
- Revised UoM Inflation Expectations
The technical outlook of the GBPUSD suggests that the pair fell sharply at 1.2275, breaking out of narrow trading range of 1.2405 – 1.2310 along with the RSI value shifting below 50 to 26, demonstrating a bearish mode of the pair. The technical outlook for the pair remains bearish at its trading below 10 and 20 EMA. GBPUSD can find resistance at 1.2310 and 1.2355. Whereas, the supports remains at 1.2275 and 1.2245.