GBPUSD Analysis 17.01.2019

The British pound fluctuated in a tight range slipping into the US session to see its rebound to its third high since November 15 against the US dollar following developments and economic data that followed on Wednesday the British economy and its US economy

The May government won a confidence vote of 325 to 306, which means that May will continue to communicate with dissident members of parliament to try to find consensus on how to move forward with Britain's exit from the European Union after parliament rejected the agreement it reached

Yesterday we followed the testimony of Governor of the Bank of England Mark Carney and three members of the Fiscal Committee on the Financial Stability Report to the London Treasury Selection Committee, which noted that there are many signs of weak growth momentum in China and growth is expected to slow further. The Chinese economy during the current year 2019, explaining that China's recent trade data showed a sharp decline.

Carney also expressed his expectation that Chinese growth will fall to five percent and that China's export growth may be close to six percent this year, noting that the Chinese authorities are taking strong stimulus measures and that these measures may not directly affect the Chinese economy. On Tuesday announced plans to boost spending by cutting taxes amid pledges to step up efforts to boost growth.

In addition, we followed the UK economy to reveal inflation data, which showed a steady growth of inflationary pressures at 0.2% in line with expectations, according to consumer price index readings, while the annual reading of the same index showed a slowdown in growth to 2.1% in line with expectations compared to 2.3% in November / November, the core annual reading of the index showed accelerated growth to 1.9% compared to the previous reading and expectations of 1.8%.

This came in conjunction with the PPI reading. The contraction of the PPI shrank to 1.0% from 2.6% in November, beating expectations for a 1.5% contraction. The annual reading of the index showed growth accelerated to 3.7% in line with expectations versus 5.3% The annual housing price index showed growth accelerated to 2.8% from 2.7% in October, below expectations of 3.0%.

On the other hand, investors by the US economy, the world's largest industrial nation, are looking to release the Philadelphia Manufacturing Index, which may reflect an expansion to 9.7 versus 9.4 last month, in conjunction with the January 12 reading of the index of claims claims May reflect a rise of 3 thousand applications to 219 thousand applications compared with 216 thousand applications in the previous weekly reading.

This comes before we see the expected talk of Federal Reserve Vice Governor and Federal Open Market Committee member Randall Quarles during the annual forum of the Insurance Institute in New York. Otherwise, investors are now looking to kick off the G20 summit, which will last until Friday in the capital Japanese Tokyo.

Technical Analysis

GBP / USD is trading around 1.2870 since yesterday, and as the price is above 1.2790, our bullish trend remains valid, supported by the moving average 7 that holds the price from the bottom and the 20 SMA moving average to signal the order The bullish indicators,

The Stochastic is moving near the overbought area, entering this area will make us see more upside and either a negative cross between its lines will lead to correction in the price movement.

The price needs to be positive enough to push trades towards our main target at 1.2962.

The trading range for today is expected among the 1.2790 support and the 1.2960 resistance

Support and resistance:

Support: 1.2779-1.2713-1.2638

Resistance: 1.2876-1.2961-1.2995

The general trend for today is bullish