GBP/USD Forecast | Daily Technical Forecast for January 20, 2017
GBP/USD Technical Overview
Yesterday Closed 1.2345
Today Open 1.2345
Day’s Range 1.2330 – 1.2372
52 wk Range 1.1450 – 1.5020
1-Year Return – 13.11%
GBP/USD Technical Support and Resistance
GBP/USD pair possibly will find the immediate support at 1.2276. If, market breaks the first support then it will go for the following support to test. Following supports are 1.2255 and 1.2958.
On the other side the market has immediate resistance 1.2348. If, market breaks the primary resistance level then, market will go for the new resistance level 1.2369 and 1.2405.
GBP/USD Fundamental Analysis
GBP/USD spent the day yesterday consolidating in the middle part of its range but with a bullish bias the strength of the dollar waxed and waned during the course of the day. There was not much economic data or events during the day which affected the pound or the dollar in any specific direction and this was reflected in the way that the GBP/USD pair traded in a very tight range despite all the volatility in the other pairs around it. This is set to continue for today as well as the markets look for a new impetus from somewhere in a specific direction. Both the pound and the dollar are likely to volatile in the short and medium term as both are set to undergo some irreversible changes during the course of the year. While the dollar is set to welcome in the new Trump administration and along with it, a period of spending, infrastructure growth and a lot of uncertainty and risk as well, the pound is also set to welcome a new dawn with the UK leaving the eurozone and along with it, losing the access to the trade zone of the euro.
Looking ahead to today, we have the retail sales data from the UK which will be released during the London session and we believe that the data would continue the trend of strong data coming out of the UK in recent months. If this does happen, we could see the pair challenging 1.2400 again.
Upcoming Important Economic News: (GMT +2)
11:30am GBP Retail Sales m/m
4:00pm USD FOMC Member Harker Speaks
Tentative USD President-Elect Trump Speaks