The GBP Is Testing 1.28 USD. We Expect Important Economic Reports from the UK

Since the beginning of the year, the GBP has strengthened against the USD, mostly due to the weakness of the US currency. The latest statements made by the Federal Reserve representatives showed their willingness to speed up the growth of the key interest rate. The FOMC Minutes, released yesterday, had proven the expectations of the market participants. Some representatives of the Central Bank, however, insist that making the monetary policy more aggressive in 2019 will not be a good move.

Right now the GBP/USD quotes are consolidating around the round 1.2800. The Brexit conundrum remains in the spotlight. Keep in mind, that on January 15 the UK government will vote on the exact conditions for leaving the EU. This will affect and define the further direction of the GBP. JPMorgan Chase & Co forecasts that GBP will grow by 4% should the Parliament approve the conditions proposed by Theresa May.

On Friday, January 11, at 11:30 (GMT+2:00), the National Statistical Service of the UK will publish an array of important economic reports which will affect the GBP dynamics in the short term. Keep an eye on the GDP report as well as the report on the production volume of the processing industry. Keep in mind that the real and forecasted values can be different.

tradingeconomics.com
Source: tradingeconomics.com

The current technical picture of GBP/USD

  • Support levels: 1.27200, 1.26400, 1.25450
  • Resistance levels: 1.28000, 1.28750, 1.29250
  • market-news

    GBP/USD remains in a flat. There is no single defined trend. The key support and resistance levels are 1.27200 and 1.28000. The indicators do not provide precise data:

    • - 50 МА has crossed 200 МА;
    • - The MACD is in the positive zone but below the signal line.

    You should open positions from the key levels.

    If the price fixes above the round 1.28000 expect further growth toward 1.28750-1.29250.

    - The MACD histogram is in the positive zone and above the signal line.

    by JustForex, 2018.01.11

    This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

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