The royal currency fluctuated in a narrow range inclined during the American session to see its rebound to a fourth session in five sessions from its lowest since April 11, 2017 against the US dollar amid a lack of economic data by the British Royal Economy. Followed Tuesday by the US economy, the world's largest economy.
The US housing market data showed a rise in construction starts and construction permits in November, with the Home Construction Index rising 3.2% to 1,256,000 versus 1.6% In October, outperforming expectations for stability at zero levels at 1,228,000 homes.
In the same context, building permits rose by 5.0% to 1,328 thousand last month, compared to a 0.4% drop at 1,265,000 in October, in contrast to expectations of a 0.4% drop at 1,260,000. Hours before the opening of the meeting of the Federal Open Market Committee in Washington today and tomorrow Wednesday.
Federal Reserve monetary policy makers are expected to raise federal funds rates by 25 basis points for the fourth time this year to between 2.25% and 2.50% and move forward with cuts in government bond purchases And mortgage bonds at $ 50 billion per month.
Markets are also looking for the Fed to unveil its expectations of growth, inflation and unemployment as well as future short-term benchmark interest rates for the next three years, looking for hints about the future tightening of monetary policy and the pace of raising federal funds rates in the coming period in criticism. The US president of the Fed's radical policies and the recent momentum of economic data.
Technical Analysis
GBPUSD breached the 1.2636 level and closed the daily candlestick above it, signaling the direction of the price for further gains in the coming period as the positive targets start at 1.2725 and extend to 1.2815 after breaching the previous level.
Therefore, the bullish trend will be likely for today unless the 1.2636 level is broken and stability below it again
The rallying average is expected to be 20 resistance at 1.2713. While the Stochastic is heading towards the overbought area in reference to the bullish movement.
The trading range for today is expected among 1.2600 support and 1.2800 resistance
Support and resistance:
Support: 1.2590-1.2500
Resistance: 1.2636-1.2713-1.2775
The general trend for today is bullish