The royal currency fluctuated in a narrowly bullish range during the US session to see its fifth session rebound in six sessions from its lowest since April 11, 2017 against the US dollar following developments and economic data that followed Wednesday on the RBA and its economy The largest economy in the world and in conjunction with the meeting of the Federal Committee in Washington.
We have followed the UK economy to reveal inflation data which showed inflationary growth accelerated to 0.2% in line with expectations versus 0.1% in October according to the consumer price index, while the annual reading of the same index showed growth stability at 2.2%, superior On expectations at 2.1%, and the core annual reading of the index showed slowing growth to 1.8% in line with expectations, compared to 1.9%.
This came in conjunction with the Producer Price Index (PPI) showing a contraction of 2.3% versus 0.8% growth in October, beating expectations for a contraction of 2.8%, while the annual reading showed slower growth to 5.6% versus 10.3% 4.9%, and the annual reading of the house price index slowed growth to 2.7% from 3.5% in September's annual reading, below expectations of 3.3%.
British Prime Minister Teresa Mae told the British Parliament that her government is still working with the European Union to obtain the guarantees needed by Parliament. She explained that the British government will clarify at the beginning of next year what it has achieved in its recent talks with the EU regarding the exit of the Kingdom United States of the European Union in an orderly manner, adding that there will be a vote on the agreement to be reached within parliament.
Investors looking for the US economy are reading the Philadelphia Industrial Index, which may reflect a widening to 15.6 from 12.9 last month, with the weekly reading of the index showing a rise in the index of aid applications before we see the release of leading indicators which may show stability at zero levels against the high 0.1% last October.
This comes hours after the FOMC meeting of 18-19 December and the press conference held by Federal Reserve Governor Jerome Powell in Washington following the Committee's decision to raise interest rates by 25 basis points for the fourth time this year to 2.25% And 2.50% and move forward in reducing the repurchase of government bonds and mortgage bonds by $ 50 billion per month.
Technical Analysis
The GBP / USD pair stopped yesterday's trading below 1.2636, stopping the positive scenario suggested in our recent reports and putting the price under negative pressure over the coming period to reactivate the bearish scenario in the short term.
Stochastic is now offering a negative cross signal, which is triggering further bearishness today, as the bearish bias is likely unless 1.2636 is breached and stability above it again, noting that our first negative target is at 1.2500.
The trading range for today is expected among 1.2500 support and 1.2700 resistance
Support and resistance:
Support: 1.2586-1.2500
Resistance: 1.2636-1.2713-1.2875
The general trend for today is bearish