Key Highlights
- The British Pound traded higher recently and broke the 1.3280 resistance against the US Dollar.
- There was a break above two crucial bearish trend lines with resistance near 1.3280 on the 4-hours chart of GBP/USD.
- The US Durable Goods Orders in Oct 2017 declined 1.2% whereas the market was looking for a 0.3% rise.
- The UK GDP figure for Q3 2017 will be released today, which is forecasted to increase by 0.4% (QoQ).
GBPUSD Technical Analysis
The British Pound after forming a base near 1.3100 against the US Dollar started an upside move. The GBP/USD pair broke a key resistance near 1.3280 to set the pace for more gains.
The pair is now well above 1.3250 and the 100 simple moving average (red, 4-hour), signaling an uptrend. During the recent upside move, there was a break above two crucial bearish trend lines with resistance near 1.3280 on the 4-hours chart.
The pair is currently trading around the last swing high of 1.3320. It might continue to move higher and trade towards the 1.236 extension of the last decline from the 1.3320 high to 1.3041 low at 1.3386.
On the downside, the broken resistance at 1.3280 is now a decent support in the short term.
US Durable Goods Orders
Recently in the US, the Durable Goods Orders report for Oct 2017 was released by the US Census Bureau. The forecast was slated for a rise of 0.3% in the Durable Goods Orders compared with the last increase of 2.2%.
However, the actual result was disappointing, as there was a decline of 1.2% in orders in Oct 2017. The last reading was revised to 2.2%. Moreover, the Durable Goods Orders ex Transportation were up by 0.4%, but less than the forecast of +0.5%.
The report added that:
New orders for manufactured durable goods in October decreased $2.8 billion or 1.2 percent to $236.0 billion. Excluding defense, new orders decreased 0.8 percent. Transportation equipment, also down following two consecutive monthly increases, drove the decrease, $3.5 billion or 4.3 percent to $77.1 billion.
Economic Releases to Watch Today
Germany’s Manufacturing PMI for Nov 2017 (Preliminary) – Forecast 60.4, versus 60.6 previous.
Germany’s Services PMI for Nov 2017 (Preliminary) – Forecast 55.0, versus 54.7 previous.
Euro Zone Manufacturing PMI Nov 2017 (Preliminary) – Forecast 58.3, versus 58.5 previous.
Euro Zone Services PMI for Nov 2017 (Preliminary) – Forecast 55.1, versus 55.0 previous.
UK GDP for Q3 2017 (QoQ) – Forecast +0.4% versus +0.4% previous.
Canadian Retail Sales Sep 2017 (MoM) – Forecast +0.9%, versus -0.3% previous.
Canadian Retail Sales ex Autos Sep 2017 (MoM) – Forecast +1.0%, versus -0.7% previous.
