GBP/USD endured its most noticeably bad week since October. The Brexit event stays on the brains of apprehensive speculators. There are key numbers on the two sides of the lake in the forthcoming week. The U.K discharges CPI and retail deals this week, and the U.S will distribute Final GDP for the second from last quarter. Too, the Federal Reserve is relied upon to raise rates at its arrangement meeting.
This week’s economic key events on which trader has be keep focus are:
CPI Data (UK): This is viewed as the UK’s most vital information since it’s utilized as the national bank’s inflation target which will be released on Wed 19/DEC/18
For last consecutive two months CPI data came around 2.4%, this time expected forecast is 2.3%.
FOMC Economic Projection: This report incorporates the FOMC’s projection for expansion and financial development throughout the following 2 years and, all the more significantly, a breakdown of individual FOMC part’s loan cost gauges. Source originally discharged in Apr 2011.
Main focus will be on commentary.
Retail sales m/m (UK): It represent consumer spending, which accounts for the majority of overall economic activity. Previous month data came weak and negative .This month forecast is 0.3%.
Current Account (UK): Contrast in an incentive among imported and traded merchandise, administrations, pay streams, and one-sided exchanges amid the past quarter.
Final GDP Data q/q (US): It’s the broadest proportion of financial movement and the essential measure of the economy’s wellbeing. Last time it came around 4.2% any number above this will bring momentum to Dollar Index.
As per daily chart of GBPUSD pair trending below key moving averages, forming lower lows and lowers High.
20 Days MA comes around 1.2703 and 50 Days MA 1.2820. Any further upside in pair faces resistance around 1.2700. To consider this fall in pair exhausted pair has to trade above 1.2700 for some time then possible pull back to 1.2820 to 1.2840 possible.
Candlestick Analysis suggests short term support come at 1.2515-1.2520 zone. This level can be used to book profit if selling from higher level around 1.2750 with resistance kept at 1.2800.
Bullish View: Only above 1.2700
Bearish View: Below 1.2520