GBPUSD – British Pound Recovers Well From 1.2000 Vs Dollar
Aayush Jindal
Key Highlights
The British Pound after weakening towards 1.2000 against the US Dollar found support and traded higher.
The GBPUSD pair bounced sharply, breaking the 1.2200 resistance and a couple of bearish trend lines on the 4-hours chart.
Today, the UK Claimant Count Change figure will be released by the National Statistics, which is forecasted to post 3.7K in Dec 2016.
In the US today, the Consumer Price Index will be released by the US Bureau of Labor Statistics, which is forecasted to increase by 0.3% in Dec 2016.
GBPUSD Technical Analysis
The British Pound suffered heavy losses earlier this week against the US Dollar. However, it looks like the GBPUSD pair is now recovering well from the 1.2000 support area.The pair opened this week with a gap lower, and moved towards the 1.2000 handle, where buyers emerged. A nice upside move was initiated, as the pair managed to break a couple of bearish trend lines on the 4-hours chart.Moreover, the pair also broke the 61.8% Fib retracement level of the last decline from the 1.2432 high to 1.1987 low, opening the doors for more gains. The next resistance on the upside is around the 100 simple moving average (H4) at 1.2400.
UK Claimant Count Change
Later today, the UK will witness a couple of crucial economic releases like the UK Claimant Count Change figure and the unemployment rate. In Dec 2016, the Claimant Count Change is forecasted to post 3.7K, compared with the last 2.4K. And, the ILO Unemployment Rate is expected to increase from 4.58% to 4.9%.If the result meets the market forecast or registers positive readings, there is a chance of GBPUSD moving towards 1.2400.
US CPI
The US will see the Consumer Price Index release by the US Bureau of Labor Statistics. The forecast is lined up of a 0.3% increase in the retail prices of a representative shopping basket of goods and services in Dec 2016, compared with Nov 2016.In terms of the yearly change, the US CPI is forecasted to increase by 2.1%, which is a lot more than the last rise of 1.7%. So, the market is expecting a positive outcome in Dec 2016, which means it may impact GBPUSD and other greenback pairs to a great extend in the short term. So, trade carefully!
The pair opened this week with a gap lower, and moved towards the 1.2000 handle, where buyers emerged. A nice upside move was initiated, as the pair managed to break a couple of bearish trend lines on the 4-hours chart.Moreover, the pair also broke the 61.8% Fib retracement level of the last decline from the 1.2432 high to 1.1987 low, opening the doors for more gains. The next resistance on the upside is around the 100 simple moving average (H4) at 1.2400.