GBP/USD Inching Higher Ahead of UK Inflation Report
FxGrow | Dec 11, 2017 09:45
GBP/USD Inching Higher Ahead of UK's Inflation Report
GBP/USD inaugurated Monday's trading session with bulls in action clocking 1.3427 high and 1.3366 low. The cable took a massive punch on Friday after releasing positive U.S Data, retreating from 1.3520 high and plunging to 1.3355 low. Technically, expectations for further upside action for the cable seems limited especially Friday's daily candle engulfing Thursday's strong bullish candle.
Fundamentally, a busy week for the market, first with today's CPI data coming from the UK with expectations placed at 3%, as as previous outcome. We are looking for a deviation in the inflation today which could set a more dovish tone for BOE's economic statement on Thursday taking into consideration that rates will stay put. On the other hand, FOMC meeting on Wednesday is taking all the attention with high expectations for hike.
Last but not least, market is looking forward to the UK PM Theresa May’s cabinet meeting scheduled later today, with the key agenda on the Brexit negotiations ahead of this week’s EU Summit.
GBP/USD Technical overview:
Closing price: 1.3395
Target price: None
Resistance levels: 1.3463, 1.3505+, 1.3610-67
Support levels: 1.3353*-, 1.3290
Trend: Sdwys/Up
Trend reversal price: 1.3353
Comment: Overall the market is still short term bullish. A close over 1.3505 will rekindle bull trending to reach previous peaking levels at 1.3612+. A close over 1.3667 is bullish for moves to 1.3860. Friday's back off alerts for near term corrections. A close under 1.3353* highlights a topping turnover and chance for declines along 1.3240-00.
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