GBPUSD Analysis 22.01.2019

The Sterling fluctuated in a tight range slipping towards the Asian session to see its rebound from its highest session since the end of December against the US Dollar amid the economic outlook on Monday by the British economy and the US economy as well.

At 05:54 GMT, the pair dropped 0.12% to 1.2876, compared with the opening levels at 1.2888 after the pair reached a low of 1.2869, while the highest at 1.2898.

We look forward to the release of the November's ROW, which is expected to maintain previous reading levels at 3.3%. We are also anticipating the rate of change in unemployment, which may see 1,900 jobs to come at a value of 20,000 at the previous value of 21,900. Which is expected to maintain the previous value at 4.1%

On the other hand, investors are looking for the US economy to release data on the housing market with the release of the existing home sales index, which may reflect a decline of 1.5% to 5.24 million one against 1.9% rise at 5.32 million in November last, The partial closure of the federal government in its fifth consecutive week to reflect the longest partial closure of the federal government in American history.

Technical Analysis

The pair has been fluctuating in a narrow range since yesterday and remains steady below 1.2962, noting that Stochastic is showing negative signs now, awaiting the price to resume the bearish trend targeting 1.2755 and 1.2636 as the next major stations, Stability below 1.2962.

The trading range for today is expected between 1.2760 and 1.2940 support

Support and resistance:

Support: 1.2752-1.2662-1.2586

Resistance: 1.2876-1.2970-1.3105

The general trend for today is bearish