What should we expect from the pair today ahead of US CPI? Peer into the 12 January GBPUSD Technical Forecast as it gives a detailed technical picture.
12 January, GKFX– The GBP/USD pair extended its rebound from eight-day troughs and went to hit fresh three-day highs at 1.3565 in the Asian trades, before easing back near the midpoint of the 1.35 handle, as we progress towards the early European trading.
- Underpinned by USD weakness, oil-price rally.
- Brexit fears continue to loom.
- Eyes US CPI and retail sales for fresh impetus.
Pair wavers around 5 & 10-DMA confluence near 1.3550
The bulls were rescued a day before after the US dollar slumped across the board on the back of a major rally staged by EUR/USD on hawkish ECB minutes. Moreover, worse-than-expected US PPI numbers also added to the weight on the greenback, boosting the rebound in GBP/USD back above 1.3550 levels.
The pair built on yesterday’s recovery gains this Friday, but further upside stalled amid a retreat in oil prices and mixed Asian equities, which dented the appetite for risky currencies such as the GBP. Also, looming concerns over the Brexit talks, with markets viewing that thing will get more difficult going forward, keep a lid on the prices.
In the day ahead, the UK docket remains data-empty once again and hence, all eyes remain on the US CPI and retail sales data for the next direction.
12 January GBPUSD Technical Forecast
Dollar’s weakness prevents the pair from plummeting, but the potential upward remains limited, with only a steady recovery above 1.3612, this year high, favoring a more sustainable advance ahead. Support levels: 1.3520 1.3475 1.3430. Resistance levels: 1.3560 1.3590 1.3615.
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