GBP USD Forecast | Daily Technical Forecast for January 19, 2017
GBP USD Technical Overview
Yesterday Closed 1.2258
Today Open 1.2258
Day’s Range 1.2254 – 1.2287
52 wk Range 1.1450 – 1.5020
1-Year Return – 13.44%
GBP USD Technical Support and Resistance
GBP USD Forecast: GBP USD pair possibly will find the immediate support at 1.0622. If, market breaks the first support then it will go for the following support to test. Following supports are 1.0600 and 1.0565.
On the other side the market has immediate resistance 1.0692. If, market breaks the primary resistance level then, market will go for the new resistance level 1.0714 and 1.0749.
GBP USD Fundamental Analysis
We had mentioned in our forecasts yesterday that the pound is unlikely to sustain the gains that it made following the speech from the UK PM May, where she laid down guidelines for the Brexit process and made it transparent that the process is likely to be a hard one. We had mentioned that it was only a matter of time before the dollar strength returned and if and when it does, the GBP USD pair is likely to go down. This is exactly what we saw yesterday as the pair was unable to sustain its gains above 1.2400 and made its way below 1.2300 where it sits as of this writing..
Yesterday, we saw the trend of good economic data from the UK continue as the claimant count change and the average earnings came in better than expected but these were not so important data and the market chose to ignore it in general.
We continue to feel that the pair is likely to continue to trade in a weak manner in the short and medium term and with the dollar gaining in strength, this is the pair that is most likely to be affected. Looking ahead to today, we do not have any major economic news from the UK and so we expected the trend of dollar strength to continue and keep the pair under pressure.