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GBP/USD Forecast | Daily Technical Analysis for January 3, 2017

GBP/USD

GBP/USD Forecast | Daily Technical Analysis for January 3, 2017

GBP/USD Technical Overview

Yesterday Closed 1.2275
Today Open 1.2275
Day’s Range 1.2275 – 1.2308
52 wk Range 1.1450 – 1.5020
1-Year Return – 16.67%

GBP/USD Technical Support and Resistance

Possible trading range for today 1.2275 – 1.2308.

GBPUSD forecast : GBPUSD pair possibly will find the immediate support at 1.2266. If, market breaks the first support then it will go for the following support to test. Following supports are 1.2245 and 1.2212.

On the other side the market has immediate resistance at 1.2332. If, market breaks the primary resistance level then, market will go for the new resistance level 1.2353 and 1.2386.

GBP/USD Fundamental Analysis

The GBP/USD pair rallied on Friday, showing signs of position squaring for the end of the year. There is still a significant uptrend line that had been so supportive just above, and it should now cause quite a bit of resistance. An exhaustive candle between here and there would be a nice selling opportunity, and of course the 1.25 level above looks resistive also. In other words, on an exhaustive candle I am willing to get involved to the short side in this market as we will reach towards the 1.21 handle below.

Looking ahead to today, we have the manufacturing PMI data from the UK which should kick off a week full of data. Traders will be looking to see if the UK continues to buck the trend and continues to post good data despite the ongoing Brexit process preparations. But we continue to believe in the overall dollar strength and pound weakness and so continue to maintain our stance that any bounce in the pair should be viewed as an opportunity to short the pair.

Upcoming Economic News : (GMT +2)

1. 11:30am GBP Manufacturing PMI
2. 4:45pm USD Final Manufacturing PMI
3. 5:00pm USD ISM Manufacturing PMI
a. USD Construction Spending m/m
b. USD ISM Manufacturing Prices

 

Further Reading :

EUR/USD Daily Technical Analysis for January 3, 2017