The British pound weakened by more than 1.5% during the US session to its lowest level since 14 of April 2017 against the US dollar following developments and economic data followed Monday by the British Royal Economy and the US economy, the largest economy in the world, which included a claim British Prime Minister to postpone the vote on the British exit agreement from the European Union.
On the UK's RSI, the Industrial Production Index, which showed a decline of 0.9% from 0.1% in September, was worse than expectations for stability at zero levels. Industrial Production Index showed a 0.6% decline versus stability at levels Zero in September, also worse than expectations, which indicated a 0.4% decline.
This came in conjunction with the release of the reading of the trade balance of goods, which showed the widest deficit to £ 11.9 billion, compared to £ 10.7 billion, in contrast to expectations that the deficit contracted to £ 10.5 billion. The Services Index for the three months ending in October, October growth slowed to 0.3% in line with expectations versus 0.4% in the previous three-month reading in September.
To-date reading of GDP, which showed a 0.1% growth in line with expectations versus stability at zero levels in September, before the National Bureau of Statistics reported its sixth GDP estimate, which indicates the RBA expanded 0.3% in the last three months November versus 0.4% in the previous three-month estimate in September.
The British pound is still under pressure from growing opportunities for Britain to leave the EU irregularly, especially after Prime Minister Theresa May asked the British Parliament in London to postpone the vote on a British exit agreement from the EU, stating that the deal would have been rejected. Frank in parliament and that there will be talks with EU leaders about concerns about getting out of the union.
In his speech to parliament, Mai declined to comment on the possible date of the vote, noting that there was unlikely to be another vote before January 21 and that her government was seeking to enable parliament to control the Pakstop plan further. It is clear that Backstop will be temporary, explaining that it has no doubt that the current agreement is the best.
The resignation of the government following its failure to leave the European Union, and some members of parliament voted to withdraw confidence from the May government, which calls for a postponement of the vote on the British exit agreement from the Union hours before the parliament is scheduled to vote on the agreement on Tuesday. In order to renegotiate with the European Union, which had previously stated that it would not renegotiate the agreement reached.
On the other hand, we followed the US economy from a statistical reading of employment opportunities and job turnover, which showed a rise to 7.08 million from 6.96 million in September, below expectations of 7.22 million, coming hours after the disclosure of labor market data for the last month. Showed its lowest unemployment rate since 1969 at 3.7% for the third month in a row, in line with expectations.
In the same context, the average hourly income reading last Friday also showed growth accelerated to 0.2% from 0.1% in October, below expectations of 0.3%, while the Non-Farm Employment Change Index showed job creation slowing to 155K Adding an added 237,000 jobs in October, worse than expectations for 198,000 jobs.
Technical Analysis
The GBPUSD came under strong negative pressure yesterday after the decision to postpone the parliamentary vote on Britain's exit from the European Union, which pushed the price to break the 1.2636 level and close the daily candle below it, which puts the price under more negative pressure expected in the coming period, where he touched The next negative target mentioned in our latest technical update at 1.2500, and we expect the bearish bias to continue in the short term.
Stochastic is providing a negative sign to support further bearishness, extending the next target to the 1.2350 area, keeping in mind that a breach of 1.2636 and stability above it will provide initial positive opportunities to start attempts to offset losses suffered by the pair in recent sessions.
The trading range for today is expected among 1.2450 support and 1.2650 support
The general trend for today is bearish