Market Research and Analysis

Daily Market Analysis Report

Thu, 12 Jan 2017 03:46 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:
  • Buy Above: 1.2170
    Take Profit:
    1st @ 1.2240
    Stop Loss @ 1.2150

GBPUSD

GBPUSD traded sideways with a huge high to low fluctuation of 229 pips. Overall it closed in positive at 1.2203, added only 31 pips to an opening price of 1.2174. The pair maintained a slightly bullish momentum for the 2nd straight day. The economic figures from the UK also remained in favor as the monthly estimate of manufacturing increased by 1.3% in November 2016; the largest contribution came from pharmaceuticals, which increased by 11.4% %. Today on Thursday, the Investors focus will remain on U.S unemployment claims figures.

12 Jan GBP
Fundamental Overview

The UK economy is under the microscope today with the release of two reports. First, the government publishes an update on industrial production for November, followed by the Q4 GDP estimate from the National Institute of Economic and Social Research (NIESR). Meantime, keep a close eye on the 10-year Treasury yield in the wake of bond manager Bill Gross’s warning that a jump above the 2.60% rate would mark the end of the bull market for bonds. UK: Industrial Production (0930 GMT) Analysts are expecting a rebound in Britain’s industrial sector in November. In November 2016, total production was estimated to have increased by 2.1% compared with October 2016. The increase in production was due to an increase in mining and quarrying output following the end of a maintenance period in the oil and gas industry and an increase in manufacturing. The monthly estimate of manufacturing increased by 1.3% in November 2016; the largest contribution came from pharmaceuticals, which increased by 11.4%.

GBP

  • 10-y Bond Auction

USD

  • President-Elect Trump Speaks
  • FOMC Member Dudley Speaks

Technical Overview

GBPUSD is trading bullish above a strong support level of 1.2110, in the support of fundamentals. The pair is holding just below a strong resistance level 1.2222 in the Asian session, while it is likely to target 1.2260 on breakage of resistance. Furthermore, the pair is likely to continue the bearish momentum once it breaks below 1.2110. The RSI value has shifted to 50 from 42, demonstrating a slightly bullish 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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