GBP/USD Outlook (17 December 2020)

Overall, GBP/USD is ranging across. Recently, GBP/USD broke the resistance zone of 1.34600.

The UK CPI y/y data released yesterday indicated a slowdown in the rate of inflation.

• CPI y/y (Actual: 0.3%, Forecast: 0.6%, Previous: 0.7%)
  
• Core CPI y/y (Actual: 1.1%, Forecast: 1.4%, Previous: 1.5%)
  

Also, the UK flash PMI data released yesterday indicated that the manufacturing sector continued to expand at a faster pace while the services sector moved closer towards ending the contraction.

• Flash Manufacturing PMI (Actual: 57.3, Forecast: 55.9, Previous: 55.6 revised from 55.2)
  
• Flash Services PMI (Actual: 49.9, Forecast: 50.5, Previous: 47.6 revised from 45.8)
  

The Bank of England will be announcing their monetary policy decision later at 2000 (SGT). It is likely that the central bank will be holding monetary policy unchanged due to the ongoing post-Brexit trade negotiation.

GBP/USD’s next support zone is at 1.34600 and the next resistance zone is at 1.38160.
With the ongoing negotiation of the post-Brexit trade deal, look for short-term buying opportunities of GBP/USD.