GBP USD Forecast for the Week 21st November, 2016
GBP USD dropped sharply last week, losing 250 points. The pair closed at 1.2340.
As per GBP USD forecast we found , The GBP USD pair fell during the past week and testing the 1.23 region. Because of this, I think that the market is going to continue to go lower; may be better served using the daily charts, or even shorter-term charts beyond that. I think that the market will try to reach towards the 1.21 handle below, and perhaps even down to the 1.20 level. Given enough time, we could break down below that level but at this point I am only anticipating a move to that region, and of course that means that we have to be bearish.
In the UK, CPI came in at 0.9%, short of the forecast of 1.1%. Retail Sales sparkled at 1.9%, but this wasn’t enough to prevent the pound from posting sharp losses on Friday. The US dollar continues to post broad gains after Trump’s stunning electoral victory. US inflation numbers were mixed, while unemployment claims dropped to a 43-year low.
This week’s key event is Second Estimate GDP. We also have the FOMC minutes from the US on Wednesday where we can expect more hints of a December rate hike and this only add to the fuel for the USD strength.
Technical GBP USD Forecast
Previous week close: 1.2344
Current Week Open: 1.2322
Today’s Market Range: 1.2302 – 1.2506
52 wk Range: 1.1450 – 1.5240
Support and Resistance Forecast
S 1: 1.2224
S 2: 1.2102
S 3: 1.1907
R 1: 1.2541
R 2: 1.2736
R 3: 1.2858