GBP: Fundamental vs Technicals
AvaTrade | Dec 17, 2014 06:54AM ET
Fundamentals
The UK data was extremely encouraging for the UK economy especially, the average wage growth was astonishing. The average earnings index cam in at 1.4% while the forecast was at 1.3%. The claimant count change also fell sharply with the final reading of -26.9K and the previous reading was at -20.4. This represents that the job market is tremendously robust. However, traders are not excited about the news and this is the reason we have not seen any move in the GBP/USD pair. Inflation is the key there which is a concern for the MPC members and they cannot ignore this before they make any conclusion to raise the interest rate.
Minority in the MPC members are seeing that the UK wage growth will rise sharply and this is a bid deal for them, but one thing is certain that all MPC members are paying very close attention to this mandate, but despite that, the key word is Minority there, and unless this word is replaced with majority, hike in the interest rate may not take place any time soon.
Technical Analysis
The pair has formed a symmetrical triangle pattern on a 30 minute time frame. The general trend on a bigger time frame is towards the downside, therefore, the odds are stacked that this could break toward the downside.
Important Zones
1.5475-1.5425 Support
1.5941-1.5904 Resistance
Disclaimer: The above is for informational purposes only and NOT to be construed as specific trading advice. responsibility for trade decisions is solely with the reader.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.