GBP/USD fails to break key resistance

1.3535 area remains on the radar for a breakout: Chart

Charts (5)

The US Dollar was bullish against most of its major pairs on Friday with the exception of the JPY. On the US economic data front, the Producer Price Index Final Demand rose 0.1% on month in November (as expected), compared to +0.3% in October. Finally, the University of Michigan's Consumer Sentiment Index unexpectedly jumped to 81.4 on month in the December preliminary reading (76.0 expected), from 76.9 in the November final reading.

On Monday, Empire Manufacturing for December is expected to rise to 6.9 on month, from 6.3 in November. Finally, Industrial Production for November is expected to increase 0.3% on month, compared to +1.1% in October.          

The Euro was mixed against all of its major pairs. In Europe, the German Federal Statistical Office has posted final readings of November Consumer Price Index at -0.8% on month, vs +0.1% in October.

The Australian dollar was bullish against most of its major pairs with the exception of the JPY. 


Regarding the week's U.S. economic data front:

The Producer Price Index Final Demand rose 0.1% on month in November (as expected), compared to +0.3% in October. 

The University of Michigan's Consumer Sentiment Index unexpectedly jumped to 81.4 on month in the December preliminary reading (76.0 expected), from 76.9 in the November final reading. 

Initial Jobless Claims jumped to 853K for the week ending December 5th (725K expected), from a revised 716K in the week before. Continuing Claims unexpectedly rose to 5,757K for the week ending November 28th (5,210K expected), from a revised 5,527K in the prior week. U.S. Job Openings increased to 6.652 million on month in October (6.300 million expected), compared to a revised 6.494 million in September.

The Consumer Price Index increased 0.2% on month in November (+0.1% expected), unchanged from October. 

The Monthly Budget Deficit contracted to 145.3 billion dollars on month in November (198.5 billion dollars expected), from 284.1 billion dollars in October. 

The Mortgage Bankers Association's Mortgage Applications fell 1.2% for the week ending December 4th, compared to -0.6% in the previous week. 

Wholesale Inventories rose 1.1% on month in the October final reading (+0.9% expected), from +0.9% in the October preliminary reading.  

Finally, the National Federation of Independent Business's Small Business Optimism Index fell to 101.4 on month in November (102.5 expected), from 104.0 in October.

In regards to FOREX performance among the major pairs, the GBP/USD struggled to break above key resistance at the 1.3535 level. The pair closed down 205 pips on the week. If the pair can't maintain above 1.308 support we may see further declines towards 1.2765 and 1.251 in extension.



Source: GAIN Capital, TradingView

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