Market Research and Analysis

Daily Market Analysis Report

Wed, 11 Jan 2017 05:04 AM GMT

Author: Senior Forex Analyst, Arslan Ali Butt

  • Daily Trading Range:
  • 1.2425 – 1.2050
  • Support & Resistance Levels:
  • R3: 1.2332
    R2: 1.2276
    R1: 1.2241
    Pivot Point: 1.2185
    S1: 1.2129
    S2: 1.2094
    S3: 1.2038
  • Trading Recommendation:
  • Sell Below: 1.2115
    Take Profit:
    1st @ 1.2065
    Stop Loss @ 1.2135

GBPUSD

GBPUSD maintained bearish momentum for the 2nd straight day to place a low of 1.2158 along with a high of 1.2270. The pair remained supported despite strong U.S Dollar as the economic events released by the U.K were in favor of a local currency Sterling. Prices in the final quarter of the year were 2.5% higher than in the previous quarter. The annual rate of growth increased, rising for the second consecutive month, from 6.0% in November to 6.5%.

11-jan-gbp
Fundamental Overview

House prices finished 2016 strongly. Prices in the final quarter of the year were 2.5% higher than in the previous quarter. The annual rate of growth increased, rising for the second consecutive month, from 6.0% in November to 6.5%. “Slower economic growth, pressure on employment and a squeeze on spending power, together with affordability constraints, are expected to reduce housing demand during 2017. UK house prices should, however, continue to be supported by an ongoing shortage of property for sale, low levels of housebuilding, and exceptionally low interest rates. Overall, annual house price growth nationally is most likely expected to slow to 1-4% by the end of 2017. The relatively wide range for the forecast reflects the higher than normal degree of uncertainty regarding the prospects for the UK economy this year.

GBP

  • Manufacturing Production m/m
  • Goods Trade Balance
  • Construction Output m/m
  • Industrial Production m/m
  • BOE Gov Carney Speaks
  • NIESR GDP Estimate

USD

  • Crude Oil Inventories
  • President-Elect Trump Speaks
  • 10-y Bond Auction
  • FOMC Member Dudley Speaks

Technical Overview

GBPUSD is consolidating above a strong support level of 1.2110, having less volatility in the Asian sessions, as the investors focus remains at other majors. As suggested earlier, the pair formed a bearish engulfing, supporting a selling trend in GBPUSD. It is likely to continue the bearish momentum once it breaks below 1.2110. The RSI value has shifted lower to 38 from 42, demonstrating a bearish mode of the pair. GBPUSD can find resistance at 1.2225 and 1.2280. Whereas, the supports remains at 1.2120 and 1.2065.

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