Market Research and Analysis

Daily Market Analysis Report

Wed, 15 Feb 2017 10:17 AM GMT

Author: Senior Forex Analyst, Arslan Ali Butt

  • Daily Trading Range:
  • 1.2525 – 1.2250
  • Support & Resistance Levels:
  • R3: 1.2679
    R2: 1.2527
    R1: 1.2433
    Pivot Point: 1.228
    S1: 1.2128
    S2: 1.2034
    S3: 1.1881
  • Trading Recommendation:
  • Buy Above: 1.2415
    Take Profit:
    1st @ 1.2475
    Stop Loss @ 1.2380

GBPUSD

GBPUSD pair fell after the arrival of neighborhood swelling figures, as yield discount costs ascended by 3.5% in the year to January 2017, and by 0.6% when contrasted with the earlier month. Input costs ascended by an incredible 20.5% in the year to January, and by 1.7% from December, achieving the speediest rate of yearly development since September 2008. An excess of expansion is as terrible as too little, and keeping in mind that the numbers didn’t achieve buyers, it won’t take long until they do. The Consumer Price Index fell by 0.5% in the month, while yearly premise it ascended by 1.8%.

15 Feb GBP
Fundamental Overview

U.K. inflation picked up less than economists forecast in January as clothing-store discounts kept the rate from reaching the Bank of England’s target. The increase in the rate to 1.8 percent from 1.6 percent in December fell short of the 1.9 percent estimated in a Bloomberg survey. The pound weakened and traders pared bets on a Bank of England interest-rate hike by the end of 2017. While less than anticipated, inflation is still running at the fastest pace in more than two years. Rising fuel costs coupled with a weaker pound are set to push it above the BOE’s 2 percent goal soon, with some economists forecasting it will hit 3 percent by the end of the year. In a sign of the upward pressure, annual growth in factory input costs surged to the fastest since 2008.

GBP

  • Average Earnings Index
  • Claimant Count Change
  • Unemployment Rate

USD

  • CPI m/m
  • Core CPI m/m
  • Core Retail Sales m/m
  • Retail Sales m/m
  • Empire State Manufacturing Index
  • Capacity Utilization Rate
  • Industrial Production m/m
  • Fed Chair Yellen Testifies
  • Crude Oil Inventories
  • FOMC Member Harker Speaks

Technical Overview

On Wednesday, the GBPUSD trades with the same technical outlook, as the pair is mostly bearish at 1.2451 and has yet to decide its trend. However, the pair is holding right below a 50 period’s EMA and the pair is likely to target 1.2515 once breaks above a major resistance level of 1.2495 and on a lower side, we can expect 1.2440 as a major support. The RSI value has shifted lower from 50 to 42, demonstrating a slight bearish mode of the pair. GBPUSD can find resistance at 1.2475 and 1.2535. Whereas, the supports remains at 1.2445 and 1.2455.

Related Posts

Risk Warning:

There is a substantial risk of loss in trading commodity futures, option and off-change foreign currency products.
Read our General Risk Disclosure.