{"id":99665,"date":"2016-12-16T07:06:04","date_gmt":"2016-12-16T12:06:04","guid":{"rendered":"http:\/\/countingpips.com\/?p=99665"},"modified":"2016-12-16T07:06:04","modified_gmt":"2016-12-16T12:06:04","slug":"gbpusd-near-the-last-defence-line-for-bulls","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2016\/12\/gbpusd-near-the-last-defence-line-for-bulls\/","title":{"rendered":"GBP\/USD near the last defence line for bulls"},"content":{"rendered":"<div id=\"inves-443204978\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">December 16, 2016<\/div><hr style=\"border: none; border-bottom: 3px solid black;\">\r\n<\/div><\/div><p>By <a href=\"https:\/\/growthaces.com\" target=\"_blank\">GrowthAces.com<\/a><\/p>\n<div class=\"content-inner\">\n<div class=\"field field-name-body field-type-text-with-summary field-label-hidden\">\n<div class=\"field-items\">\n<div class=\"field-item even\">\n<p><strong>GBP\/USD: BoE kept policy on hold in December<\/strong><\/p>\n<ul type=\"disc\">\n<li><strong>The Bank of England\u2019s Monetary Policy Committee voted unanimously to keep monetary policy unchanged. <\/strong>The minutes said there was \u201clittle news\u201d to change the domestic growth outlook, but the<strong> recent rise in sterling would, by itself, reduce somewhat the overshoot in inflation relative to target in the medium term.<\/strong><\/li>\n<li>The Committee discussed the rise in long term interest rates since November. It noted the rise was global and reflects in part expectations of a fiscal stimulus in the US. The Committee was sanguine about the latter, saying if indeed a looser US fiscal policy materialised it would \u201chelp to underpin the slightly greater momentum in the global economy \u2026 and reduce further the remaining risk of persistently low inflation\u201d. However, the MPC said that while \u201cthe central outlook for the global economy had probably improved \u2026, fragilities had become more evident and policy uncertainty had increased.\u201d It pointed in particular to risks in China (where it said vulnerability to capital outflows had increased) and the euro area (where risks surrounding the banking system remained elevated).<\/li>\n<li>The MPC expects growth of 0.4% qoq in the fourth quarter, unchanged from its forecast in the November Inflation Report. It continues to expect the economy to slow next year, pointing to the fall in business investment intentions and an impending squeeze on real incomes as higher imported costs push up inflation. On the latter, it said the timing and extent of this slowing will depend on the evolution of wages and the sensitivity of household consumption growth to a squeeze in household real income growth.<\/li>\n<li>Last month the BoE dropped plans to cut rates again and instead adopted a neutral stance for policy after conceding it had been wrong-footed by the resilience of Britain&#8217;s economy after the shock of June&#8217;s vote to leave the European Union.<\/li>\n<li>The BoE expects inflation to hit about 2.7% by this time next year as sterling&#8217;s plunge pushes up import prices, probably hurting spending power. So far, consumer spending has been robust since June&#8217;s Brexit vote. While retail sales growth slowed last month from October&#8217;s 14-year high, sales volumes were still 5.9% higher than a year ago.<\/li>\n<li><strong>In our opinion the BoE\u2019s statement was rather neutral than dovish, but sterling sank to a two-week low against the USD after the BoE&#8217;s announcement. The GBP\/USD managed to find support at 1.2378. The 1.2300 level remain the last line of defence for bulls, but positive alignment of the tenkan and kijun line gives some hope. We opened a long at 1.2440 today, while our stop is just below Thursday\u2019s low.<\/strong><\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" title=\"\" src=\"https:\/\/growthaces.com\/sites\/default\/files\/gbpusd_16122016.png\" alt=\"GBPUSD Daily Forex Signals Chart\" width=\"599\" height=\"385\" \/><\/p>\n<p>&nbsp;<\/p>\n<p><strong>USD\/CAD: Oil prices should support loonie in the long term<\/strong><\/p>\n<ul type=\"disc\">\n<li><strong>The Bank of Canada said the risk of a sharp correction in Canada&#8217;s housing market and financial stress on households has increased in the last six months<\/strong> but new mortgage rules are guaranteed to reduce the nation&#8217;s vulnerability.<\/li>\n<li>Governor Stephen Poloz said that while tighter regulations will work through the system only gradually, they will improve the quality of household debt by taking the riskiest mortgages off the table.<\/li>\n<li>In its semi-annual Financial System Review, the central bank said that while the probability of a sharp price correction and nationwide financial stress on households is low, its impact would be severe, given rising debt loads.<\/li>\n<li>Sales of Canadian homes fell 5.3% in November from October, a report from the Canadian Real Estate Association showed.<\/li>\n<li><strong>Statistics Canada data showed Canadian manufacturing sales unexpectedly fell by 0.8% in October from September on widespread weakness, indicating fourth-quarter growth could be sluggish.<\/strong> Canada&#8217;s economy grew by 3.5% on an annualized basis in the third quarter after shrinking in the second quarter following a major wildfire in oil-producing Alberta. In October, the central bank cut its forecast for annualized fourth-quarter growth to 1.5% from 2.8%.<\/li>\n<li>Prices of oil, a major Canadian export, settled little changed yesterday after sliding to their lowest in a week. A stronger USD, in which oil is traded, tends to hit crude demand as it makes fuel purchases more expensive for users of other currencies. <strong>We expect that upward trend of oil prices will be continued in the medium term, which should support the CAD. Our short-term USD\/CAD hit the stop-loss yesterday, but our long-term outlook remains bearish.<\/strong><\/li>\n<\/ul>\n<p><img decoding=\"async\" title=\"\" src=\"https:\/\/growthaces.com\/sites\/default\/files\/usdcad_16122016.png\" alt=\"USDCAD Daily Forex Signals Chart\" \/><\/p>\n<p>&nbsp;<\/p>\n<p><strong>TRADING STRATEGIES:<\/strong><\/p>\n<p>FOREX &#8211; MAJOR PAIRS:<\/p>\n<p><strong><a href=\"https:\/\/growthaces.com\/articles\/order-subscription\">(Trading Strategies &#8211; VIP Subscription Only &#8211; Try Now For $1)<\/a><\/strong><\/p>\n<p>FOREX &#8211; MAJOR CROSSES:<\/p>\n<p><a href=\"https:\/\/growthaces.com\/articles\/order-subscription\"><strong>(Trading Strategies &#8211; VIP Subscription Only<\/strong><strong> &#8211; Try Now For $1<\/strong><strong>)<\/strong><\/a><\/p>\n<p>PRECIOUS METALS:<\/p>\n<p><a href=\"https:\/\/growthaces.com\/articles\/order-subscription\"><strong>(Trading Strategies &#8211; VIP Subscription Only<\/strong><strong> &#8211; Try Now For $1<\/strong><strong>)<\/strong><\/a><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p>&nbsp;<\/p>\n<p><em><b>About the Author:<\/b><\/em><\/p>\n<p>By GrowthAces.com &#8211; <a href=\"https:\/\/growthaces.com\" target=\"_blank\">Daily Forex Trading Strategies<\/a><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By GrowthAces.com GBP\/USD: BoE kept policy on hold in December The Bank of England\u2019s Monetary Policy Committee voted unanimously to keep monetary policy unchanged. The minutes said there was \u201clittle news\u201d to change the domestic growth outlook, but the recent rise in sterling would, by itself, reduce somewhat the overshoot in inflation relative to target [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-99665","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/99665","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=99665"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/99665\/revisions"}],"predecessor-version":[{"id":99666,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/99665\/revisions\/99666"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=99665"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=99665"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=99665"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}