GBPUSD Fundamental Analysis


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.

Key Quotes

  • 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.

Disclaimer

This article “22 December GBPUSD Fundamental Analysis ” was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.

If such information is acted upon by you then this should be solely at your discretion and GKFX will not be held accountable in any way.

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