Analyzing the Impending GBP and USD Economic Data: Projections, Technical Insights, and Market Expectations
On December 20, 2023, the upcoming Consumer Price Index (CPI) news release for GBP is poised to be a focal point for traders, as it holds potential implications for GBP pairs. The forecast for this event stands for the headline to come in at 4.3%, reflecting a decrease from the previous data release, which reported a figure of 4.6%. The important CORE reading for CPI is also expected to decline to 5.6% from 5.7%. Should the actual CPI readings on December 20, 2024, surpass the forecasts, it bodes well for the possible strength of Sterling.
Later the same day, there is the much anticipated Consumer Board Consumer Confidence news, from the USA with a forecasted value of 104.1. A scenario where the actual figure exceeds this forecast is considered advantageous for the US dollar. These economic data releases are expected to exert a substantial influence on the GBPUSD pair this week.
Examining the technical analysis on the GBPUSD pair in the Daily timeframe reveals critical levels, with 1.31447 acting as a key resistance level and 1.20323 as a pivotal support level. The current market price is situated within this range, trending upwards. A trendline has been drawn, connecting at least two higher lows, indicating the current upward trajectory.
In the event of a breakdown below the established trendline, there exists a heightened probability of the market price reversing to 1.20323. Conversely, should the trendline exhibit resistance and reject the current price, it suggests a likelihood of the price continuing its ascent towards the 1.31447 level.
The impending economic data releases are anticipated to significantly impact market dynamics. In consideration of your analysis, where do you foresee the market heading in response to these influential factors?
