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GBP/USD: Still Struggling To Break 1.3400 Handle Ahead of UK Data

Published 22/12/2017, 08:15
GBP/USD
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DX
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GBP/USD: Still Struggling To Break The 1.3400 Handle Ahead of UK Data
gbpusd

GBP/USD still trading dull through the week with failure to close above 1.3400 level, trading flat with consolidation congestion. The pair dipped today to 1.3364 at 20-EMA and tested successfully with a rebounce. Yesterday, cable found some support and managed to overcome losses after plunging to 1.3331, and closed at 1.3385 after disappointing US GDP outcome of 3.2%, while expectations were at 3.3% and above.

Today, the pound awaits Current Account and Final GDP for last quarter of 2017 which should give push GBP/USD into newer levels and break out of the triangle that is seen stuck inside. As for the US Dollar, Core Durable Goods data and Core PCE Index (Fed#s favourite inflation indicator), both are due as NY session opens.

GBP/USD technical overview:

Closing price: 1.3385

Target price: None

Resistance levels: 1.3400 1.3454*

Support levels: 1.3314, 1.3235+/-

Trend: Sdwys/Down

Trend reversal price: 1.3454*

Comment: The market is still biased down, contained under 1.3454* resistance. A roll off from this week's sideways days open up potential for selloffs to 13285 and chance to stretch for the low 13200's. Trade may again congest in Monday-last Friday's ranges, but tight congestion will bear flag. A close over 1.3454* is needed for a short term reversing upturn.

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