GBPUSD Analysis 07.12.2018

The British pound rose during the US session to see its third session retreat since June 22, 2017 against the US dollar amid a lack of economic data by the British economy following developments and economic data followed Thursday by the US economy's largest economy in the world, which included members of the Federal Open Market Commission.

British Prime Minister Theresa May said it was unlikely that Britain's forthcoming parliament vote would be postponed on Tuesday to the British exit from the EU on a regular basis. She said she was talking with her colleagues in her government about how the parliament could play a role in the details of the Pakstop "Which is an integral part of the withdrawal agreement, explaining that the British government is not entitled to withdraw unilaterally from Pakstop.

She also noted that the options currently available are the agreement to leave the EU on a regular basis, exit from the EU without agreement, and not to leave the EU at all. The United Kingdom now faces the risk of not leaving the Union at all, With the knowledge that the duty imposed on her government is to fulfill the demand of the British people to leave the European Union.

On the other hand, Federal Chancellor Randall Quarles followed the opening remarks of the Stanford University Economic Seminar in California before we saw the release of preliminary data for the labor market with the reading of the Change in Private Sector Index, which showed a slowdown in job creation to around 179,000 Adding an added 225,000 jobs in October, worse than expectations for 195,000 jobs added.

In parallel with the release of the trade balance index, which showed a widening deficit to $ 55.5 billion compared to $ 54.6 billion last September, worse than expectations of a widening deficit to $ 55.2 billion, showed a reading of the index of claims for the week before the beginning of the month decrease By 4 thousand to 231 thousand applications compared to 235 thousand applications in the previous weekly reading, contrary to expectations at 226 thousand applications.

On the 24th of last month, the ongoing claims index showed a drop of 74K to 1,631K, exceeding expectations of 1,690K. This came before we saw the final reading of Markit Institute's Index of Service Providers Which expanded to 54.7 from the previous reading and expectations at 54.4 and from 54.8 in October.

We also followed the disclosure of the Institute of Supply Service Index, which showed a widening to 60.7 compared to 60.3 in October, contrary to expectations that indicated the contraction of breadth to 59.1, and we would like to point out that the service supply is important in the fact that the service sector in the United States represents More than two-thirds of US GDP.

This came in conjunction with the factory demand index which showed a drop of 2.1% from 0.2% last September, worse than expectations of a 1.9% decline. Federal Reserve Chairman and Federal Reserve Chairman Rafael Postk's talk about the local economy Georgia Economic Outlook series in Atlanta.

Technical analysis:

The GBP/USD has made a clear breach of the 1.2730 level and has stabilized above it, to activate the positive scenario over the intraday basis, targeting mainly towards 1.2962.

Therefore, the bullish trend is likely to be supported today by the positive stochastic, unless the level of 1.2730 is broken and stability below it again.

The price succeeded in breaching the SMA 7 while  the SMA 20 formed resistance to the price currently trading below it at the resistance level of 1.2773.

The trading range for today is expected among 1.2700 support and 1.2900 resistance.

Support and resistance:

Support: 1.2730-1.2698-1.2650;

Resistance: 1.2773-1.2823-1.2894.

The general trend for today is bullish.