Forecast for GBP/USD on February 12, 2020


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.


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.


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.

The material has been provided by InstaForex Company -