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.
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:
- 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.