GBP/USD Forecast for the Week of January 2-6, 2017
GBP/USD posted slight gains last week, with the pair closing at 1.2337. This week’s key events are the three PMI releases. In the US, consumer confidence jumped, as consumers continue to feel optimistic about the economy as we enter 2017. On the labor front, unemployment claims dropped, beating expectations. There were no major British releases last week.
GBP/USD opened the week at 1.2287 and dropped to a low of 1.2195, testing resistance at 1.2201 .The pair then reversed directions and climbed to a high of 1.2388. GBP/USD closed the week at 1.2337.
GBP/USD Technical Overview
Previous week close: 1.2351
Current Week Open: 1.2336
Today’s Market Range: 1.2323 – 1.2355
52 wk Range: 1.1450 – 1.5020
1-Year Return – 16.27%
GBP/USD Support and Resistance Forecast
S 1: 1.2235
S 2: 1.2189
S 3: 1.2116
R 1: 1.2381
R 2: 1.2427
R 3: 1.2500
Weekly Economic Events Forecast for January 2-6, 2017 (GMT: +0.0)
Manufacturing PMI: Tuesday, 9:30. The PMI dipped to 53.4 points in November, shy of the estimate of 54.4 points. Little change is expected in the December report.
Construction PMI: Wednesday, 9:30. Construction PMI was almost unchanged in November, posting a reading of 52.8. This figure beat the forecast of 52.3. The estimate for December stands at 52.6.
Net Lending to Individuals: Wednesday, 9:30. This indicator is closely related to consumer spending, a key driver of economic growth. In October, the indicator climbed to GBP 4.9 billion, above the estimate of GBP 4.8 billion. No change is expected in the November report.
Services PMI: Thursday, 9:30. The index rose to 55.2 points in November, pointing to expansion in the services sector. This was above the forecast of 54.2 points. The estimate for the December report stands at 54.8 points.
BOE Chief Economist Andy Haldane Speech: Thursday, 13:00. Haldane will speak at an event in London. Analysts will be looking for clues as to the BoE’s future monetary policy.