21 Dec, 2023
5 minutes
Daily Technical Analysis December 21th 2023
1. GBP/USD Analysis:
News Summary:
The UK overall CPI fell sharply year-on-year in November, from 4.6% to 3.9% (expected to be 4.3%). This data performance will be welcomed by the Bank of England. Weakness in inflation also appears to be broad, annual core inflation falling from 5.7% to 5.1% (5.6% expected), helped by lower services CPI. The unexpected CPI decline is likely to illustrate some problems, these problems may not be apparent immediately.
Trend Analysis:
We can see GBP/USD fell after the release of CPI data, MACD double line and histogram bar formed dead cross and then moved downward. The CPI report weakened the market's view of the differences between the Bank of England and Federal Reserve, prompting the BOE to make dovish shift, and the Pound may continue to be under pressure, the sell limit could be employed, stop loss is compulsory.
Today's Key Price Levels:
Key Support Levels: [1.2480]
Key Resistance Levels: [1.2770]
Pivot Points [1.2680]
2. Gold Analysis:
News Summary:
Some Fed officials have warned that bets on an early rate cut are overblown, but it hasn't stopped expectations that the Fed could begin cutting rate as early as March 2024. Fed funds futures price indicate a 67.5% chance of 25 basis point rate cut in March. Amid high inflation in the United States, the FED remains uncertain about the time of its interest rate increase. Although higher interest rates have pushed up opportunity cost of investing in gold, gold will benefit from a lower interest rate environment.
Trend Analysis:
We can see gold found support above the 48 hours moving average, while the MACD double lines and energy bar began to shrink near the zero axis. With gold currently trading in a range above $2,000, the buy limit could be placed, stop loss is necessary.
Today's Key Price Levels:
Key Support Levels: [2013]
Key Resistance Levels: [2060]
Pivot Points [2030]