GBP/USD Forecast | Daily Technical Analysis for January 24, 2017
GBP/USD Technical Forecast Overview
Yesterday Closed 1.2532
Today Open 1.2532
Day’s Range 1.2504 – 1.2545
52 wk Range 1.1450 – 1.5020
1-Year Return – 12.18%
GBP/USD Technical Support and Resistance
Possible trading range for today 1.2504 – 1.2545
GBP/USD forecast : GBP/USD pair possibly will find the immediate support at 1.2404. If, market breaks the first support then it will go for the following support to test. Following supports are 1.2358 and 1.2284.
On the other side the market has immediate resistance at 1.2552. If, market breaks the primary resistance level then, market will go for the new resistance level 1.2598 and 1.2672.
GBP/USD Fundamental Analysis
It is likely to be a crucial day for the GBP/USD pair as the UK awaits the ruling from its Supreme Court regarding its EU membership and the Brexit process. Over the last 24 hours, we have seen the pair rise in anticipation and we saw the pair close above 1.25 for the day yesterday, something which it has not managed to do for a long time. For the last few months, we have seen the pair make repeated runs across 1.25 only to be beaten back into submission by the bears but yesterday, in our forecast, we said that the pound looks stronger this time and that we might get a run towards 1.27 or 1.28 in the short term in GBPUSD.
The Supreme Court will rule on whether the invocation of Article 50, which will kick off the Brexit process, requires the intervention of Parliament or not. It is generally expected that the SC will rule that the Parliament needs to give its approval for the invocation of Article 50 and this is likely to be very positive for the pound as it would mean that the process would be very well thought out, planned and it would be ensured that the ideas of many would be incorporated to make the process better rather than giving this power to a select few in the government who may not carry it through with proper discussion. This is the general expectation but it comes with the risk that Parliament approval is likely to delay each stage of the process as views of many have to be listened to and incorporated. We may also see a case of buy the rumor and sell the fact kind of move and this is what the traders have to guard themselves against.
we do not have any major economic news from the UK or the US which is generally the case during the last week of any month.