From the 22 December GBPUSD Fundamental Analysis, it is evident that the pair is stuck in a 20-pips range ahead of UK GDP as markets expect a broader market sentiment to play a key role.
22 December, GKFX – The GBP/USD pair managed to reverse a brief dip to 1.3369 lows reached in early Asia and now makes another attempts to regain 1.34 handle, as we progress towards late-Asian/ early European trading.
- Back near 5-DMA at 1.3380
- Rebound capped amid broad USD demand.
- The UK final GDP & current account – Up next.
22 December GBPUSD Fundamental Analysis
The spot recovers most losses and trades neutral amid a lack of fresh fundamental drivers, as broad-based USD rebound continues to cap the recovery moves while cross-driven strength lends support to the GBP bulls.
The greenback staged a solid comeback versus its main peers after the EUR/USD pair fell sharply on the Catalan election outcome, which showed that the Catalan separatists won a majority in Spanish regional election. The USD index bounced from 92.82 levels to regain the 93 mark, now +0.15% higher on the day.
Meanwhile, the losses seen in EUR/GBP also lift the demand for the pound across the board, keeping the downside cushioned. However, it remains to be seen if the spot keeps its range-play intact, following the release of the UK macro news, the final GDP, and current account data, as markets expect the broader market sentiment to play a key role amid pre-Christmas thin trading.
Also, of note remains the US durable goods, core PCE price index and consumer sentiment data for fresh USD moves, which will eventually impact the pair.
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