Market Research and Analysis

Daily Market Analysis Report

Fri, 30 Dec 2016 04:44 AM GMT

Author: Senior Forex Analyst, Arslan Ali Butt

  • Daily Trading Range:
  • 1.2525 – 1.2050
  • Support & Resistance Levels:
  • R3:     1.2314

    R2:     1.2289

    R1:     1.2273

    Pivot Point:     1.2247

    S1:     1.2222

    S2:     1.2206

    S3:     1.218

  • Trading Recommendation:
  • Sell Below:  1.2295

    Take Profit:

    1st @ 1.2220

    Stop Loss @ 1.2320


GBPUSD is trading at 1.2246, up 0.22% on the day, having posted a daily high at 1.2277 and low at 1.2209. GBPUSD has been drifting along on the downside, with a minor recovery attempt yesterday that was subdued and capped before any significant levels. Regardless of today’s recuperation move, 1.2300 stamp stays tricky for the pair as restored ‘hard Brexit’ stresses may keep on weighing on speculator conclusion and confine any further recuperation. Besides, with no major financial discharges due until one week from now, separating money related strategy position between the Federal Reserve and other real national banks ought to keep on lending backing to the US Dollar and contribute towards constraining extra recuperation for the major.

Fundamental Overview

The US Dollar remained supported and dragged the exchanged rate lower as In the week ending December 24, the advance figure for seasonally adjusted initial claims was 265,000, a decrease of 10,000 from the previous week’s unrevised level of 275,000. The 4-week moving average was 263,000, a decrease of 750 from the previous week’s unrevised average of 263,750. There were no special factors impacting this week’s initial claims. This marks 95 consecutive weeks of initial claims below 300,000, the longest streak since 1970. The advance seasonally adjusted insured unemployment rate was 1.5 percent for the week ending December 17, unchanged from the previous week’s unrevised rate.

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


  • Housing Equity Withdrawal q/q


  • Chicago PMI

Technical Overview

GBPUSD trades at 1.2271 continuing a slightly bullish momentum in early trading sessions from 1.2222. The pair is still trading below a narrow trading range of 1.2405 – 1.2310 along with the RSI value shifting above 38 from 47, demonstrating a bearish mode of the pair. The technical outlook for the pair also fell below 10 and 20 EMA. GBPUSD can find resistance at 1.2295 and 1.2310. Whereas, the supports remains at 1.2215 and 1.2175.

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