Forecast for GBP/USD on February 12, 2020

GBP/USD

Yesterday, quite good economic indicators came out in Great Britain and the pound sterling grew by 36 points. GDP for the quarter showed the expected 0.0%, but there was an increase of 0.3% in December. On an annualized basis, GDP was 1.1% against expectations of 0.8%. The trade balance increased from -4.9 billion pounds to 0.85 billion against a pessimistic forecast of -10.0 billion pounds. The trade balance is noteworthy in that it is the first case of a surplus in 35 years. Industrial production turned out worse than expected, which is not surprising in the general European recession: total Industrial Production in December added 0.1% against the expected 0.3%, year-on-year decline of -1.8% against the expected -0.8%. Until the end of the week, the main role will now be played by the US CPI statistics on Thursday (forecast for January 0.2%) and Friday's data on industrial production and retail sales.

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On the daily chart, the price is testing the resistance of the Fibonacci level of 161.8%. The general trend in the indicators is downward. The target is the Fibonacci level of 138.2% at the price of 1.2820.

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On a four-hour chart, the price may still be noted on the resistance of the MACD line (1.2982). The signal line of the Marlin oscillator slows down in growth. A trend reversal is likely.

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