GBPUSD Analysis 17.12.2018

LONDON (Reuters) - The British pound weakened during the US session on Friday, capping its sixth consecutive weekly loss, which could reflect the longest weekly loss in three and a half years against the US dollar following developments and economic data followed Friday by the British economy and the US economy. the world.

At 7:16 pm GMT, the GBPUSD pair dropped 0.59% to 1.2569 compared to the opening levels at 1.22643 after reaching a low of 1.2530 and a high of 1.2667.

We have followed the British RSI reading of leading indicators, which showed a steady decline of 0.4% unchanged from last September. Otherwise, British Prime Minister Teresa Mae believed that it would be better for the UK to emerge from The European Union has agreed to an orderly exit and it is clear that the EU confirms its desire to conclude the agreement

In a similar vein, the British Prime Minister's spokesman said earlier that talks with the European Union at the summit yesterday are only the beginning and that there is a common desire between the United Kingdom and the European Union To reach a solution to the Pakstop plan, expressing the wish of May in a parliamentary vote on the exit agreement as early as next month.

On the other hand, we followed the US economy to reveal the reading of retail sales, which account for about half of consumer spending, which accounts for more than two-thirds of US gross domestic product, which showed slowing growth to 0.2% versus 1.1% in October, The core reading of the same index also showed a slowdown in growth to 0.2% in line with expectations versus 1.0% in October.

This came before the world's largest industrial producer saw the reading of the Industrial Production Index, which showed a rise to 0.6% from 0.2% in October, beating expectations of a 0.3% rise. Growth to 78.5% versus 78.1% in October, below expectations that accelerated growth to 78.6%.

Worse than expectations at 55.1, versus 55.4, before we see the growth of wholesale inventories accelerating to 0.6% in line with expectations and 0.5%.

Technical Analysis

GBP / USD is trading below 1.2636, and negative pressure remains intact over the short and medium term, awaiting the resumption of the bearish trend targeting 1.2500 initially.

A breach of this level would extend the downside wave to 1.2350, while a breach of 1.2636 would halt the expected decline and lead the price for gains starting at 1.2720 then 1.2835.

The moving averages continue to push the price towards further downside as the stochastic moves in a sideways path

The trading range for today is expected among 1.2480 support and 1.2650 resistance

Support and resistance:

Support: 1.2500-1.2405

Resistance: 1.2638-1.2713-1.2876

The general trend for today is bearish