GBPUSD Analysis 18.01.2019

The British pound rose during the US session to its highest since November 15 against the US dollar following developments and economic data that followed Thursday the British economy and its counterpart the US economy, the largest economy in the world.

The British House of Commons announced the date of the British Parliament's vote on the alternative plan for Britain's exit from the European Union on 29 January. British Prime Minister Teresa Mae put forward her alternative plan to parliament on May 21.

The British parliament on Tuesday rejected Britain's exit from the European Union, reached by the May government late last year with EU negotiators, with 432 deputies against the agreement in return for 202 votes in favor of the agreement, followed by another vote in parliament to withdraw confidence From the May government on Wednesday, the May government succeeded in gaining the confidence of 325 parliamentary members in exchange for 306 votes to withdraw confidence from them.

We are looking forward to the release of retail sales for the month of December, which is expected to come down at the Fahima -0.8% compared to the previous reading 1.4%

On the other hand, investors are looking forward to what Federal Open Market Committee (FOMC) Chairman and New York Bank Chairman John Williams will say about the economic outlook and monetary policy at the Economic Leadership Forum of the New Jersey Banking Corporation.

This comes before the world's largest industrial nations saw the release of the industrial production index, which may reflect a slowdown in growth to 0.2% from 0.6% in November, and reading the Energy Utilization Index, which may show growth accelerating to 78.6% versus 78.5% .

Leading to a preliminary reading of the University of Michigan Consumer Sentiment Index for January, which could reflect a widening of 97.0 versus 98.3 in the previous December reading.

Technical Analysis

GBPUSD succeeded in confirming the breach of 1.2962 after closing the daily candlestick above it, reinforcing the bullish short term bullish outlook, with our next target at 1.3070.

Therefore, we are waiting for further upside for the day provided that the price remains stable above 1.2962 which represents the first condition for the continuation of the suggested bullish trend.

The trading range for today is expected among 1.2900 support and 1.3070 support

Support and resistance:

Support: 1.2876-1.2779-1.2713

Resistance: 1.2968-1.3000-1.3070

The general trend for today is bullish