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Dec 08, 2016

02:59 PM EDT


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Market Analysis

Home » Featured » GBPUSD Building a Major Support?

GBPUSD Building a Major Support?

Posted by FXTimes in Featured - December 10th, 2015 2:49 pm GMT

pound-sterling-us-dollar

Key Points

  • British Pound failed to break an important resistance area of 1.5200 and traded lower against the US Dollar.
  • There is a major support on the downside forming near 1.5100 in GBPUSD.
  • UK Trade Balance released by National Statistics posted a trade deficit of £-3.729B, compared with the market forecast of £-2.500B.
  • Similarly, the UK Goods Trade Balance missed the mark and posted a deficit of £-11.827B in October 2015.

Technical Analysis

The GBPUSD pair climbed higher Intraday and traded close to the 1.5200 area. There were many attempts to clear the stated level, but buyers failed, and as a result, there was a downside move.

The pair fell sharply and traded close to the 38.2% Fib retracement level of the last leg from the 1.4956 low to 1.5199 high. Let us see whether it can move again towards the 1.5200 resistance area or not moving ahead.

GBPUSD

The hourly RSI is above the 50 level, which is a positive sign for bulls in the near term.

UK Trade Balance and BOE Rate Decision

Today in the UK, there were many important releases, including the BoE Interest Rate Decision announced by the Bank of England. It was more of a non-event as the outcome was as expected. There was another release, as the Trade Balance, which is a balance between exports and imports of total goods and services was published by National Statistics. The outcome was disappointing, as there was a trade deficit of £-3.729B, compared with the market forecast of £-2.500B.

Similarly, the UK Goods Trade Balance was lower than the forecast and posted a deficit of £-11.827B in October 2015.

The GBPUSD pair spiked down after the release and retreated from the 1.5200 area. It may correct a few more pips lower before finding support near 1.5100-20.

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