Market Research and Analysis

Daily Market Analysis Report

Thu, 11 May 2017 06:07 AM GMT

Author: Senior Forex Analyst, Arslan Ali Butt

  • Daily Trading Range:
  • 1.3000 – 1.2500
  • Support & Resistance Levels:
  • R3: 1.3383
    R2: 1.3143
    R1: 1.2993
    Pivot Point: 1.2753
    S1: 1.2603
    S2: 1.2363
    S3: 1.2213
  • Trading Recommendation:
  • Sell Below: 1.2945
    Take Profit:
    1st @ 1.2910
    Stop Loss @ 1.2965


GBP/USD remains locked in a narrow trading range and price action could remain quite dull in today’s session, as the market is awaiting the latest policy decision from the Bank of England, which is due Thursday at 07:00.  Currently, the pair is trading at 1.2945 a gain of 0.08% over Tuesday’s North American close. BoE Monetary Policy Committee will announce its latest decision on interest rates as well as bond purchases and the quarterly inflation report. Bank Governor Carney is also scheduled to hold a press conference. An increase in interest rates appears unlikely given that the UK will be in the middle of an election campaign ahead of the June 8th election and the Monetary Policy Committee tends to be reluctant to adjust monetary policy during an election campaign unless the need for adjustment is overtly clear.

10 May GBP
Fundamental Overview

The UK economy is in the spotlight today with the release of the monthly report on industrial production for March, followed by the Bank of England’s monetary policy announcement and quarterly inflation report. Later, the weekly update on US jobless claims will be widely read in the wake of upbeat employment numbers in recent days. UK: Industrial Production (0830 GMT) Brexit concerns are starting to worry the crowd (again), but survey data for manufacturing still suggests solid growth ahead. Markit’s PMI data for April, in fact, perked up to a three-year high. Sentiment doesn’t always lead to stronger hard data.


  • RICS House Price Balance
  • Manufacturing Production m/m
  • Goods Trade Balance
  • Construction Output m/m
  • Industrial Production m/m
  • FOMC Member Dudley Speaks
  • BOE Inflation Report
  • MPC Official Bank Rate Votes
  • Monetary Policy Summary
  • Official Bank Rate
  • Asset Purchase Facility
  • MPC Asset Purchase Facility Votes
  • NIESR GDP Estimates


  • FOMC Member Dudley Speaks
  • PPI m/m
  • Unemployment Claims
  • Core PPI m/m
  • Natural Gas Storage

Technical Overview

The GBPUSD has moved above the 1.2900 level with net support from the EUR/USD push higher to 6-month highs near 1.1000. A break above 1.2990 may lift the pair above 1.3016, below which a test of 1.3050 is very likely. Conversely, a break below 1.2931, leading to a subsequent break below 1.2900 is likely to drag the pair towards testing its next support near 1.2848.

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