GBPUSD Analysis 24.12.2018

The British currency fluctuated in a narrowly bullish range during the US session on Friday to see its seventh session rebound in eight sessions from its lowest since 11 April 2017 against the US dollar following developments and economic data that followed on Friday the royal economy British economy and his counterpart the largest economy in the world.

We have followed the British Royal economy to reveal the final reading of the GDP index, which showed a 0.6% expansion during the third quarter, consistent with the previous preliminary reading and forecasts, versus 0.2% growth in the second quarter. The final annual reading of the same index showed a 1.5% Also compatible with previous preliminary reading and projections.

This came in conjunction with the disclosure of the current account, which showed a widening deficit to 26.5 billion pounds compared to 20.0 billion pounds during the second quarter, worse than expectations at a deficit of 21.7 billion pounds sterling, and with the final reading of the index of total investment in business shrinking to 1.1% compared to the preliminary reading expectations at 1.2% decline, compared to 0.7% decline in the second quarter.

We also followed the release of the public sector net borrowing index, which showed that the surplus widened to £ 6.3 billion from £ 5.6 billion, which was revised from a surplus of £ 8.0 billion in October, below expectations of a surplus of £ 7.0 billion. Before we see the Bank of England's quarterly report.

On the other hand, we followed the US economy to reveal the final reading of GDP for the third quarter, which showed the widest economy in the world 3.4% compared to the previous reading and expectations of growth of 3.5%, compared to growth of 4.2% in the second quarter, while reading GDP growth of 1.8% compared to the previous reading and expectations of growth of 1.7%, versus 3.0% growth in the second quarter.

This came in tandem with the Durable Goods Index, which accounts for almost half of consumer spending, which accounts for more than two-thirds of US GDP, which rose 0.8% from 4.3% in October, below expectations for a 1.6% rise. The core reading of the index itself showed a 0.3% drop from 0.2% in October, in contrast to expectations of a 0.3% growth rate.

We also followed the release of personal income and expenditure data last month, which showed a slowdown in personal income growth to 0.2% from 0.5% in October, worse than expectations for a slowdown in growth to 0.3%. 0.4% versus 0.8% in October, beating expectations that growth slowed to 0.3%.

The reading of Core Personal Consumption Expenditures showed growth stability at 0.1%, unchanged from October, below expectations for an acceleration of growth of 0.2%, while the reading of personal consumption depressing slowed growth to 0.1% vs. 0.2% As opposed to expectations for stability at zero levels, and the annual reading of the same index showed a slowdown in growth to 1.8% in line with expectations versus 2.0%.

Technical Analysis

GBPUSD remains stuck between the pivotal levels of support 1.2636 and resistance 1.2725, keeping our neutrality in place until the price confirms a breach of one of these levels.

We will note that breaking the support will put the price under negative pressure to target levels starting at 1.2500, while breaching the resistance will stimulate the price to achieve more gains in the short term, where the positive targets start at 1.2820 and extend to 1.2962.

The trading range for today is expected among 1.2600 support and 1.2750 resistance

Support and resistance:

Support: 1.2636-1.2586-1.2500

Resistance: 1.2710-1.2780-1.2875

The expected general trend for today: depends on the levels mentioned in the report