Market Research and Analysis

Daily Market Analysis Report

Mon, 02 Jan 2017 07:16 AM GMT

Author: Senior Forex Analyst, Arslan Ali Butt

  • Daily Trading Range:
  • 1.2525 – 1.2050
  • 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:
  • Buy Above:  1.2325

    Take Profit:

    1st @ 12375

    Stop Loss @ 1.2305

GBPUSD

GBPUSD is trading at 1.2348 continuing bullish momentum for 3rd consecutive day. The British Pound was presumably the most profited in the fleeting a week ago, as the GBP/USD pair spiked to 1.2387 on dollar’s sudden auction early Asia, settling by the day’s end at 1.2333. Still the pair shut the year 2,000 pips lower, and in the red for third year in succession. The sharp decay, filled by the consequence of the Brexit choice, will probably hold the Pound underweight, as the proposed date to begin the way toward leaving the EU looms.

2-jan-gbp
Fundamental Overview

In her New Year message, British PM Theresa May said that “this is the year we start to make Brexit happen,” adding that she will try to get the “right deal” for every single person in the UK. 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 Monday, the investors are recommended to monitor the following events:

GBP

  • Bank Holiday

USD

  • Bank Holiday

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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