December 11, 2023

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GBPUSD 1.36000 as an obstacle

GBPUSD chart analysis

During Asian trading, the British pound consolidated earlier gains against the dollar. The pound is currently trading for $ 1.3589, a 0.01% weakening of the British currency since the beginning of trading tonight. US bond yields will continue to be a crucial role in influencing the dynamics of USD prices and give some impetus to the main currency. Investors reviewed the mixed monthly report on business in the United States from Friday; the dollar returned solidly on the first day of the new week and was supported by increased yields on US Treasury bonds. Hopes that the Omicron outbreak will not disrupt the British economy and growing bets on further interest rate increases by the Bank of England continued to support the British pound.

Bullish scenario:

  • We need to continue this positive consolidation and break above the upper trend line.
  1. Only then can we expect to continue towards 1.37000.

Bearish scenario:

  • We need a new negative consolidation that would pull GBPUSD from the current level of 1.36000.
  • Then we come across potential support in the MA20 and MA50 moving averages in the 1.35250-1.35500 zone.
  • Our psychological support is at 1.35000, and the break below can bring us down through to the MA200 moving average in the zone around 1.33500.
  • If bearish pressure continues, there is a probability that we will visit the zone of the previous low at around 1.32000.


Market overview

British news

Britain reported 141,472 new COVID-19 cases on Sunday, down from 146,390 on Saturday, while the number of newly reported deaths fell to 97 from 313, official figures show. There is still pressure on British hospitals, and the country is not yet in a position to say that it can live with COVID-19, Senior Minister Michael Gove said on Monday. Asked how long the rapid tests will be free, Gove, the Minister of Housing, said they are a vital tool in combating a pandemic that is not over yet.

In Britain, there has been an increase in cases of Omicron-related COVID-19 in recent weeks, although mortality rates have been lower than during previous waves.

About 1.217 million people were positive for COVID-19 last week, 6.6% more than a week earlier, while the death toll rose 30.9% from a week earlier to 1.255.

American news

A very tight labor market and unbridled inflation could require the Federal Reserve to raise interest rates earlier than expected and reduce total assets like a second brake on the economy. US central bankers said at their meeting last month.

In a document released Wednesday that markets saw as distinctly hawkish, minutes from a policy meeting on December 14-15 showed that Fed officials were equally concerned about the pace of rising prices that promised to survive, with global bottlenecks in supply “until” 2022.

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