GBPUSD Analysis 31.01.2019

The Australian dollar rose during the Asian session to see its rebound for the third session in five sessions of its lowest since January 4 against the US dollar following developments and economic data that followed on the Australian economy and on the eve of developments and economic data expected Thursday by the US economy largest economy In the world.

At 02:54 GMT, the AUDUSD rose 0.11% to 0.7256, compared with the opening levels of 0.7248, after reaching a high of 0.7265 while the lowest at 0.7243.

We followed the Australian economy's fourth-quarter import price index, which showed a slowdown in growth to 0.5% versus 1.9% in the third quarter, beating expectations of 0.3%, while the fourth-quarter export price index accelerated growth to 4.4% 3.7% in the third quarter, in contrast to expectations that growth slowed to 2.7%.

On the other hand, the markets are currently looking to the US economy for a reading of the Labor Cost Index for the fourth quarter, which may reflect the stability of growth to 0.8%, unchanged from the third quarter, in conjunction with the publication of the index of requests for aid for the week of 26 January, Which may reflect a rise of 16 thousand applications to 215 thousand requests in the previous weekly reading,

Ahead of the Chicago PMI reading, which could reflect a contraction of 61.5 vs. 65.4 last December, to reveal housing market data with a new home sales reading that could reflect a rise to around 569,000 homes Compared with 544,000 in November.

This comes just hours after the FOMC meeting on 29-30 January, which left the committee on federal funds rates at between 2.25% and 2.50% with a further reduction in bond repurchase by $ 50 Billion dollars a month before Federal Reserve Governor Jerome Powell said the panel would be patient before resuming monetary policy tightening later.

Technical Analysis

GBPUSD's recent decline at 1.3055 has stopped significantly above 1.3126 and is now resting on it, ending yesterday's bearish scenario and pushing the pair back to retrace the upside move, targeting 1.3226 initially.

Thus, the upside will be expected for today unless the price falls to hold above 1.3126 while breaching the target will extend the upside wave to 1.3360 as the next major station.

The trading range for today is among the key support at 1.3050 and resistance at 1.3226

Support and resistance:

Support: 1.3105-1.2970-1.2876

Resistance: 1.3250-1.3310

The general trend for today is bullish