GBPUSD Daily Forecast Dec 20 2018

Pound dollar 689875 1

GBPUSD: Consolidates Around 1.2670 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 restores the downside momentum and opens 1.2480 level, further down, support comes at 1.2402 level.

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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, 1.2823

Key data/events which may affect GBPUSD today:

The U.K will report on Retail Sales for Nov today at 09:30 GMT. The forecast is to rise 0.3$, from -0.5% a month earlier.

Later on the day at 12:00 GMT. The Bank of England will announce its latest monetary policy decision. The forecast is that the Central Bank will keep policy on hold. And keep short-term interest rates at 0.75%.