GBP/USD Technical & Fundamental Outlook | 18 Dec 2013

FXOpen

Suggestion for Trade: Buy Limit at 1.6151, SL 1.6131, Target 1.6450

GBP/USD jumped more than 80 pips during London session on Wednesday after better than expected economic reports about Britain’s economy.

Major Support & Resistance Levels

At the moment of writing spot is around 1.6352 where immediate resistance is seen at 1.6464 (high of December 10, 2013) ahead of 1.6490 (trendline resistance), a break and daily close above 1.6490 may open doors for 1.6520 and 1.6600.

GBP/USD Technical & Fundamental Outlook | 18 Dec 2013

On Downside, cable is likely to find immediate support around 1.6350 (hourly 200 MA) ahead of 1.6257 (previous double top resistance turned support) and then 1.6150 (channel support). A break and daily close below this support area may trigger further losses up to 1.6078 and 1.5838.

Technical Indicators

There are no signs of divergence on MACD which means the ongoing bullish trend is likely to continue in near future. Relative Strength Index (RSI) is in oversold territory at hourly timeframe that suggests a correction might be in play before further upward movement. 55 MA and 100 MA are at the same point on 4-hour chart which is an alert signal for change in trend.

Fundamental Scenario

Earlier Britain’s claimant count change for the month of October printed better than expected reading of -36.7K. ILO Unemployment Rate (3M) for the month of October also remained better than forecast with 7.4%. Later in the US session we have some very crucial fundamental events in-line that include Fed interest rate decision, Fed decision about asset purchase program, Federal Open Market Committee (FOMC) economic projections and then Fed's monetary policy statement followed by press conference. Investors are curiously waiting for Fed’s decision about the fate of Asset Purchase Program; even a small tapering may trigger bullish movement in USD.

 

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

Commodities and European currencies Test Key Supports EUR/USD Analysis: The Price Today Has Set Its Minimum Since the Beginning of March Market Analysis: GBP/USD Dives While USD/CAD Gains Bullish Pace The US Currency Corrects After Recent Growth USD/JPY Price Analysis: Consolidation ahead of US News

Latest articles

Indices

Although UK-100 Index Is Near All-time Highs, UK Economy Slips into Recession

Technically, a national economic recession is defined as two consecutive quarters of contraction, and yesterday's Office for National Statistics data confirmed that this has happened — UK GDP fell in the third and fourth quarters of 2023 by 0.1% and

Cryptocurrencies

DOGE Price Increases by 170% in Less Than 2 Months

On February 1, 2024, the DOGE/USD rate was = 0.0783. On the last Friday of March, it rose to 0.2150. The rising price means Dogecoin is now the eighth-largest cryptocurrency in the world by market capitalization, overtaking Cardano

Commodities

Market Analysis: Gold Price and Crude Oil Price Gain Bullish Momentum

Gold price started a steady increase above the $2,200 resistance level. Crude oil prices are gaining bullish momentum and might rise toward $85.00.

Important Takeaways for Gold and Oil Prices Analysis Today

· Gold price started a decent increase

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65.68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.