The British pound fell during the US session to its lowest level since April 12, 2017 against the US dollar following developments and economic data followed Tuesday by the British Royal economy and his counterpart the US economy, the largest economy in the world amid the postponement of the British Parliament vote on the exit agreement Britain, which was due to meet today at the request of British Prime Minister Theresa May at the weekend because of fears of parliament's rejection of the agreement.
We have followed the RBA to disclose labor market data, which showed the stability of the unemployment rate for the three months ending in October at 4.1%, unchanged from the previous reading in line with expectations, while the reading of the average income index accelerated growth to 3.3% 3.1%, compared with expectations of 3.0%, and the reading of applications for aid was 21.9 thousand applications compared to 23.2 thousand applications, other than expectations 13.2 thousand applications.
The British pound is still under pressure from growing opportunities for Britain to emerge irregularly from the EU, especially after Prime Minister Theresa May asked the British Parliament in London yesterday to postpone the vote on a British exit agreement from the EU, Within the parliament and that there will be talks with EU leaders about concerns about exit from the union.
In an interview with parliament on Monday, May refused to comment on the possible date of the vote, noting that it was unlikely that there would be another vote before January 21 and that her government was seeking to enable Parliament to control the Pakstop plan further. The agreement has become clear that Pakstop will be temporary, explaining that it has no doubt that the current agreement is the best.
Claims of the resignation of the government following its failure to leave the European Union have been raised, and some members of parliament have voted to withdraw confidence from the May government, which calls for a postponement of the vote on Britain's exit agreement from the union hours before parliament is due to vote. Renegotiation with the European Union, which stressed that it would not renegotiate the agreement reached.
On the other hand, we followed the reading of the Producer Price Index (PPI), which is a preliminary indicator of inflationary pressures, which showed a slowdown in growth to 0.1% from 0.6% in October, beating expectations for stability at zero levels. The same index slowed growth to 2.5% in line with expectations versus 2.9% in the previous annual reading for the month of October.
In the same context, the core reading of the PPI showed a slowdown in growth to 0.3% from 0.5% in October, beating expectations of a slowdown of 0.1%. The core annualized reading of the same index showed that growth accelerated to 2.7% versus 2.6% In the previous annual reading for the month of October, contrary to expectations that indicated a slowdown in growth to 2.5%.
Technical Analysis
The GBP / USD pair rebounded strongly yesterday after testing the 1.2636 level, which proved strong against the positive price attempts, causing new losses, breaking the 1.2500 level and closing the daily candlestick below it, which supports our continued bearish outlook for the coming period, paving the way for the move. About 1.2350 which represents our next main target.
Moving averages are trading above the price and increase the negative pressure on the price and push it towards further decline. While the Stochastic is within the oversold territory to increase negative pressure on the price.
Therefore, we are likely to see further declines today if the price does not break through the 1.2636 level and hold a daily close above it.
The trading range for today is expected among 1.2400 support and 1.2600 resistance
Support and resistance:
Support: 1.2495-1.2405-1.2350
Resistance: 1.2635-1.2737-1.2894
The general trend for today is bearish