GBPUSD Analysis 08.01.2019

The British pound rose during the US session yesterday to see its third session retreat from its lowest level since February 10, 2017 against the US dollar amid a lack of economic data by the British Royal Economy and following developments and economic data that followed Monday from The US economy is the largest economy in the world.

The Halifax Home Price Index is expected to come in at 0.5% versus -1.4% last month

British Prime Minister Theresa May expressed her government's efforts to secure more guarantees for the EU's exit from the European Union. The talks between British MPs and EU leaders are continuing and the British Parliament will have a bigger role. In terms of the exit agreement, adding that her government will put the necessary procedures on the file of Northern Ireland.

The British Government spokesman, James Slack, said that British Prime Minister Teresa Mae will form a ministerial committee headed by 21 ministers. The aim of the committee is to prepare for Britain's exit scenario without an agreement from the European Union. Following the start of discussions in the British government after Wednesday after the return of the government from the holiday of Christmas.

On the other hand, the markets are waiting for the US economy to reveal the reading of the US trade balance, which is likely to improve the trade deficit and come up by $ 54.00 billion compared to -5.50 for the previous readers

We are also looking for job opportunities, which are likely to rise 7.170 million versus 7.079 million from the previous reading. Otherwise, investors are eyeing the outcome of the trade talks between Washington and Beijing, which are being completed in China today.

Technical Analysis

The GBPUSD extended more positive trading yesterday to surpass SMA 50 and is trying to hold above it, which supports our continued bullish outlook, targeting mainly 1.2962 areas.

The price may be forced to decline temporarily due to the negativity of Stochastic in the event of exit from the oversold area, awaiting a positive momentum enough to push the price towards the mentioned target, noting that the continuation of the expected rise depends on stability above 1.2636.

The trading range for today is expected among 1.2680 support and 1.2850 resistance

Support and resistance:

Support: 1.2713-1.2638-1.2586

Resistance: 1.2780-1.2876

The general trend for today is bullish