This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
GBP/USD could reach $1.58
GBP/USD has now seen over 200 pips added over the last week as the five-month move lower finally looks to be becoming exhaustive. The month of December might be quieter in terms of equity trading volumes, but is arguably the most important for the retail markets. Retail sales in the run up to year-end will help analysts interpretate how strong consumer confidence is.
OPEC’s meeting today will also be watched by currency traders as the perception that the OPEC nations will not reduce output could see oil continue to collapse and global inflation continue to drop.
For the time being, a rangebound trading pattern between $1.56-$1.58 could emerge as a lateral move materialises waiting for either moving averages to move lower, or a shift in the trend of economic data releases from the US.