GBPUSD Daily Forecast Dec 19 2018

Pound - dollar - 689875

GBPUSD: Around Critical Resistance…

As long as 1.2670 resistance holds on a daily closing basis, the GBPUSD remains neutral with risk to the downside. A failure to hold above 1.2670 level on a daily closing basis could mean a return to 1.2615 level where a cut will open 1.2559 level. Below 1.2559 restore the downside momentum and opens 1.2480 level, further down, support comes at 1.2402 level.

Suggested Reading:

USDJPY Weekly Forecast Dec 17 2018

GBPUSD Daily Forecast Dec 18 2018

Market -Weekly Outlook Dec 17 2018

On the upside, the GBPUSD will have to break and hold above 1.2670 level on a daily closing basis to prevent a return to the downside. If seen it will target 1.2705/1.2756 levels. A halt is likely. But A break opens 1.2823 level, further upside, resistance comes at 1.2882 level.

Conclusion: The GBPUSD faces downside risk as long as trades below 1.2670 level on a daily closing basis. Above that level will challenge 1.2705/1.2756 levels.

Support: 1.2615, 1.2559, 1.2480, 1.2402

Resistance: 1.2670 (critical), 1.2705, 1.2756, 1.282

Key data/event which may affect GBPUSD today:

  1. U.K Consumer Price Inflation (Year-Over-Year). 

The U.K will report on the Consumer Price Index (CPI) today at 09:30 GMT. The Forecast is to fall 2.3%, from 2.4%. On a monthly basis, the forecast is to inch up 0.2%, from 0.1% a month earlier. A selling opportunity is likely for GBPUSD and GBPJPY.

2.  Federal Reserve Rate Decision & Press Conference.

The Federal Reserve will announce its federal funds’ rate and publish updated economic projections at its last policy meeting of the year today at 19:00 GMT.

The Federal Reserve is expected to raise interest rates by a quarter point for a fourth time this year (in a range between 2.25%-2.5%) at the conclusion of its two-day policy meeting.

Fed Chair Jerome Powell will hold what will be a closely-watched press conference 30 minutes after the release of the Fed’s statement, as investors look for fresh clues on inflation and the forecast for the coming year.