The British pound rose during the American session to see its rebound for the second straight session from April 11, 2017 against the US dollar amid a lack of economic data by the British Royal Economy. Following the developments and economic data followed Thursday by the largest US economy World economy.
British Prime Minister Theresa May expressed her thanks to the Conservative members who supported her in a vote of no confidence, adding that she had heard well the concerns of Parliament about the UK exit agreement from the EU and that there was a need to end the exit agreement, explaining that her government would seek The legal and political guarantees that Britain needs
She said she would not comment on whether she would give up her post before the next election or not, noting that it was in the interest of all parties to reach an agreement on a planned exit of Britain from the European Union and that she did not expect immediate withdrawal. On behalf of the British government that it is possible to vote on the exit agreement during the next week depending on the development of talks with the European Union.
On the other hand, we followed the release of the reading of the index of US claims for the week ending on the eighth of this month, which showed a decline of 27 thousand requests to 206 thousand requests in the previous weekly reading, compared to expectations of 226 thousand applications, For the week ending with the beginning of this month, up 25 thousand applications to 1,661 thousand applications, worse than the expectations at 1,649 thousand applications.
The import price index, which showed a drop of 1.6% from 0.5% in October, was worse than the 1.0% drop, leading to a reading of the treasury budget which showed a widening deficit to $ 204.9 billion Compared to $ 100.5 billion in October, worse than expected, indicating the deficit widened to $ 193.5 billion.
Technical Analysis
GBPUSD offers more positive trading to breach the 1.2636 level and tries to maintain stability above it, which requires attention from the upcoming trades as closing the daily candle above this level will stop the negative scenario and push the price to recover in the short and short term.
The price is trading below the moving average 7 which is pushing the price to push it further downward.
The Stochastic is giving a bullish cross signal in a reversal of price action
So far, the downside scenario is still effective with the daily closing below 1.2636, noting that our first target is at 1.2500.
The trading range for today is expected among 1.2500 support and 1.2660 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