Market Research and Analysis

Daily Market Analysis Report

Wed, 28 Dec 2016 04:52 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 is trading at 1.2254, down -0.26% on the day, having posted a daily high at 1.2290 and low at 1.2240. The pair is forming a doji candlestick pattern, indicating indecision in the market. The pair is still in a weekly sell off, dropping from 1.2773 at the start of December 2016 and is headed for a break of the 1.22 handle if the bears can make it through 1.2220 support level and recent lows while the market is supporting the dollar long theme ahead of Trump’s inauguration on the 20th Jan on a foundation of a hawkish looking FOMC for H1 2017. 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.

28-dec-gbp
Fundamental Overview

Consumer optimism about the economy increased to the highest level since August 2001, according to a monthly survey released Tuesday. The Consumer Confidence Index hit 113.7 in December, The Conference Board said on Tuesday. Economists polled by Reuters expected the Consumer Confidence Index to hit 109.0 for the month. The survey, a closely followed barometer of consumer attitudes, measures confidence toward business conditions, short-term outlook, personal finances and jobs. “Consumer Confidence improved further in December, due solely to increasing Expectations which hit a 13-year high (Dec. 2003, 107.4).

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

GBP

  • BBA Mortgage Approvals

USD

  • Pending Home Sales m/m

Technical Overview

On Wednesday, GBPUSD trade at 1.2261 with minor 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 above 47 from 26, demonstrating a bearish mode of the pair. The technical outlook for the pair remains mixed as its trading slightly above the 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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