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GBPUSD Market Update
1/12/2023 11:54 AMAgainst a local decline in the US currency, the GBP/USD pair is correcting at 1.2140.
Investors are scrambling to assess the impact of mass actions by public sector workers demanding a change in wages, which fell by a maximum of 3.0% last year amid an increase in the cost of living. Thus, the Sky News channel reported that up to 25.0K people took part in the demonstration of medical workers, which took place yesterday, but up to 100.0K employees of medical institutions can go to new street events, which, in turn, completely paralyzes the work national health system. Amid protests in 2022, the country lost a record 1.2M working days, about half of which occurred in November, according to The Telegraph.
The main influence on the dynamics of the asset is provided by the US dollar, which renewed the semi-annual low at 102.800 in the USD Index. After a recent speech by US Federal Reserve Chairman Jerome Powell, investors who have not received information about the future course of monetary policy rely on inflation data to be published in the afternoon: analysts suggest that the consumer price index in December will fall to 6.5% from 7.1%, and the core rate – to 5.7% from 6.0%, which will provide local support to the US currency.
On the daily chart, the trading instrument moves within a local ascending corridor, reversing at the support line.
Technical indicators gave a buy signal: the range of fluctuations of the EMA on the Alligator indicator began to expand upwards, and the histogram of the AO oscillator forms rising bars near the transition level.
Resistance levels: 1.2250, 1.2650. | Support levels: 1.2000, 1.1700.