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The FxPro Analyst Team

Forex: Economic Figures Support GBPUSD

GBPUSD has seen a substantial fall of 1.155% from 6th to 8th December, after testing the resistance level at 1.2750.
Yesterday the price has rebounded after testing the support level at 1.2550.

This morning we have seen the release of a series of the UK figures. The Consumer Inflation Expectations was 2.8%, surpassed the previous figure of 2.2%. Goods Trade Balance (Oct) was £-9.71 bln, outperformed the expectations of £-11.8 bln and the previous figure of £-13.83 bln, which is the best figure since Sep 2015. Although it was likely partly driven by the depreciation of Sterling.

The better-than-expected figures pushed GBPUSD up, breaking the next resistance level at 1.2600.

On the 1 hourly time frame, the 10 SMA is crossing over the 20 SMA, indicating that the trend is likely to turn bullish.

The 4 hourly Stochastic Oscillator is heading upwards, suggesting a further rebound.

The resistance is at 1.2630, followed by 1.2650.
The support is at 1.2600, followed by 1.2585 and 1.2550.

Keep an eye on the US Michigan Consumer Sentiment Index (Dec), to be released at 15:00 GMT today. It will likely influence the strength of the dollar and the trend of GBPUSD.
With better-than-expected figure, it will likely weigh on GBPUSD. With lower-than-expected figure, it will likely help GBPUSD.

gbpusd-h4

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