GBPUSD Analysis – December-12-2023

Currently, the GBPUSD pair is positioned beneath the Ichimoku cloud, suggesting that the downward trend might persist. Should the bears succeed in locking the price under the red bullish trendline, marked at 1.2539, it would reinforce the downward trend. The next anticipated movement would be toward the 38.2% level honored by the Fibonacci support.

GBPUSD Technical Analysis – 4H Chart

FTSE 100 Hits Two-Month High

Bloomberg – On Tuesday, UK shares witnessed a notable recovery. The FTSE 100 index climbed by 0.4%, reaching 7,570 points. This increase compensated for the previous day’s minor losses, marking the highest point in almost two months. The surge was mainly driven by a rise in stocks linked to commodities following the release of the UK’s latest labor report. Despite the unemployment rate holding steady at 4.2% for the fifth consecutive month, there was a noticeable slowdown in wage growth – the sharpest in nearly two years.

Investors in the money markets seem to anticipate the Bank of England’s (BoE) first rate cut in June, though the consensus is that it will trail behind the Federal Reserve’s rate adjustments. Companies like Rio Tinto, Anglo-American, and Antofagasta led the corporate gains, each adding over 1.5% and recovering from the previous day’s downturn. This rebound was bolstered by rising prices in base and ferrous metals, counteracting China’s significant deflation. However, Hargreaves Lansdown experienced an 8% drop after the Financial Conduct Authority (FCA) raised issues regarding the interest earned by customers on cash balances.