Market Research and Analysis

Daily Market Analysis Report

Wed, 04 Jan 2017 09:48 AM GMT

Author: Senior Forex Analyst, Arslan Ali Butt

  • Daily Trading Range:
  • 1.2725 – 1.2350
  • Support & Resistance Levels:
  • R3: 1.261
  • R2: 1.2505
  • R1: 1.2441
  • Pivot Point: 1.2337
  • S1: 1.2232
  • S2: 1.2168
  • S3: 1.2064
  • Trading Recommendation:
  • Sell Below: 1.2275
  • Take Profit 1st
  • @ 1.2199
  • Stop Loss @ 1.2295


GBPUSD failed to continue its bullish momentum and traded at 1.2240 falling more than 100 pips as the uncertainty on UK Article 50 prevails in the market, weakening the British Pound. Moreover, the Greenback strengthened on better than expected economic figures. Especially, the ISM Manufacturing PMI came 2 years high at 56.1, demonstrating stronger economy comparing to the previous figure of 53.6. Whereas, the investors are still aiming for NFP-Nonfarm Payrolls as well as the Unemployment Rates releasing on Friday.

Fundamental Overview

The UK manufacturing sector ended 2016 on a positive note. Rates of growth for production and new orders in December were among the best seen over the past two-and- a-half years. Companies benefited from stronger inflows of new work from both domestic and overseas clients, the latter aided by the boost to competitiveness from the weak sterling exchange rate. The seasonally adjusted Markit /CIPS Purchasing Managers’ Index (PMI) rose to a 30-month high of 56.1 in December, up from 53.6 in November and well above its long-run average (51.5). The headline PMI has signaled expansion in each of the past five months.


  • Construction PMI
  • Net Lending to Individuals m/m
  • M4 Money Supply m/m
  • Mortgage Approvals


  • Total Vehicle Sales

Technical Overview

Technical outlook for the GBPUSD remains bearish, as the pair trade 1.2241 below 50 EMA. It is likely to continue the bearish momentum and will decide further direction on major events from the U.S. The RSI value shifting lower to 38 from 47, demonstrating a slight bearish mode of the pair. GBPUSD can find resistance at 1.2227 and 1.2310. Whereas, the supports remains at 1.2200 and 1.2175.