Market Research and Analysis

Daily Market Analysis Report

Tue, 27 Dec 2016 04:44 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: 1.2295
    Take Profit:
    1st @ 1.2235
    Stop Loss @ 1.2315

GBPUSD

GBPUSD remained unchanged at 1.2285 on Monday the 26rd Dec, I the absence of any economic indicators. The pair is forming a doji candlestick pattern, indicating indecision in the market. The UK’s current account data revealed the trade surplus, supporting the GBP. The pair overall fluctuation in the market remained 72 pips with a high of a 1.2297 and a low of 1.2228. The market will have very low volatility in observance of Christmas holidays.

27-dec-gbp
Fundamental Overview

The UK’s current account deficit was £25.5 billion in Quarter 3 (July to September) 2016, up from a revised deficit of £22.1 billion in Quarter 2 (April to June) 2016. The deficit in Quarter 3 2016 equated to 5.2% of gross domestic product (GDP) at current market prices, up from 4.6% in Quarter 2 2016. The widening in the current account deficit was mainly due to a widening in the deficits on total trade and secondary income, partially offset by a narrowing in the primary income deficit. The total trade deficit widened to £13.6 billion in Quarter 3 2016, from £7.3 billion in Quarter 2 2016.

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

GBP

  • Bank Holiday

USD

  • CB Consumer Confidence

Technical Overview

On Tuesday, GBPUSD trade at 1.2261 with no change after it fell sharply on Friday 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.

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