GBPUSD Analysis 10.12.2018

The British pound weakened during the US session against the US dollar amid a lack of economic data by the British economy following the economic developments and data that followed last Friday the British economy and the US economy, the largest economy in the world, including the talk of the Governor of the Federal Reserve and members of the Federal Commission for the open market.

We saw the Halifax house price index, that showed a drop of 1.4% from October's + 0.7%, in contrast to expectations of slower growth of 0.2%, while the same index for the last three months last month showed slower growth to 0.3% versus 1.5%, worse than expectations of 1.0%, leading to higher consumer expectations of inflation to 3.2% compared to 3.0% in the second quarter.

This came ahead of the release of US labor market data last month, that showed unemployment stabilized at its lowest level in almost five decades at 3.7% for the third month in a row, in line with expectations. The average hourly earnings showed growth accelerated to 0.2 From 0.1% in October, below expectations of 0.3%.

In the same context, the Non-Farm Employment Change Index showed a slowdown in job creation to 155,000 added jobs, compared to 237,000 in October, worse than expectations for 198,000 added jobs before the final reading of the Wholesale Inventories Index Showed a rise to 0.8% from October's preliminary reading and expectations of 0.7% versus 0.4% in September.

Technical analysis:

The GBP/USD has tested the key support at 1.2730 and has maintained its stability so far, keeping the bullish scenario intact so far, supported by Stochastic positive, awaiting the move towards 1.2962 which represents our next main target.

Moving averages above the price are pressure on it to mask the bullishness as the price trades around the SMA 7, that will form resistance to the price.

Keep in mind that a break of 1.2730 will press the price to test the 1.2636 level that represents the most important level to determine the next short- and medium-term path.

The trading range for today is expected among 1.2670 support and 1.2850 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.