On Friday, the 11th of January, the eye of all traders should be focused on UK data such as GDP, Industrial Production, and Manufacturing Production. The other important data are from the US in form of Consumer Price Index, UoM Consumer Sentiment, UoM Inflation Expectations and Federal Budget Balance. No speeches are scheduled for today.
GBP/USD analysis for 11/01/2019:
The UK Gross Domestic Product data are scheduled for release at 09:30 am GMT and the global investors are expecting no change in the level of GDP on the monthly basis (0.1%), but a possible slight decrease is expected at the yearly quarterly basis from 0.4% to 0.3%.
The Gross Domestic Product is a comprehensive measure of overall production and consumption of goods and services. GDP serves as one of the primary measures of overall economic well-being. While GDP announcements generally conform to expectations, unanticipated changes in this metric can move markets.
Robust GDP growth signals a heightened level of economic activity and often a higher demand for the domestic currency. At the same time, economic expansion raises concerns about inflationary pressures which may lead monetary authorities to increase interest rates. Thus better than expected GDP figures are generally bullish for the Euro, while negative readings are generally bearish.
Let’s now take a look at the GBP/USD technical picture at the H4 time frame. The market tried many times to break through the technical resistance at the level of 1.2705 – 1.2810 but failed every time. Despite the fact, that the price is still consolidating in a relatively tight range between the levels of 1.2705 – 1.2810, the bears are now starting to regain the control of the market as the conditions are now overbought and the momentum is barely above the neutral level. If the bears will violate the level of 1.2705, then the next target for them is seen at the level of 1.2647 and below. On the other hand, the next technical resistance is seen at the level of 1.2824.
The material has been provided by InstaForex Company – www.instaforex.com