Source: FXStreet
Author: Anil Panchal
Article: Original article
Publication date: Wednesday, December 21, 2022
GBPUSD attempts to continue its rebound from a three-week’s low. At the same time, the currency pair welcomes the broad-based weakness of the U.S. dollar due to fears of a recession. Nevertheless, the imminent release of important U.S. and U.K. data seems to raise concerns within the pair’s buyers.
Pessimistic data on the U.S. housing market gave the GBPUSD pair a chance to remain more sustainable. In November, the number of houses under construction in the U.S. declined by 0.5% month-on-month after its previous reduction of 2.1% in October, meanwhile the number of building permits dropped by 11.2% compared to a 3.3% fall recorded last month.
Looking ahead, December’s U.S. Conference Board Consumer Confidence data expected to be at the level of 101.00 versus 100.00 previously, along with the U.K. updates, will guide the GBPUSD pair’s short-term moves. The main focus will be on Thursday's U.K. GDP data, as well as Friday's U.S. core inflation data.
21-day EMA joins the monthly rising support line, thereby limiting a short-term decline of the GBPUSD pair close to 1.2160. Nevertheless, bearish MACD signals and persistent RSI challenges the pair buyers.
Forecast: GBPUSD is likely to rise
This content is for informational purposes only and is not intended to be investing advice.
