GBP/USD Outlook (16 December 2020)

Overall, GBP/USD is ranging across. Recently, GBP/USD trended up into the resistance zone of 1.34600.

The UK employment data released yesterday indicated an increase in the number of people claiming for unemployment benefits in November as the country returns to lockdown. Nonetheless, average earnings rose while unemployment rate release was better than forecasted.

• Average Earnings Index 3m/y (Actual: 2.7%, Forecast: 2.2%, Previous: 1.4% revised from 1.3%)
  
• Claimant Count Change (Actual: 64.3K, Forecast: 10.5K, Previous: -64.1K revised from -29.8K)
  
• Unemployment Rate (Actual: 4.9%, Forecast: 5.2%, Previous: 4.8%)
  

The UK CPI y/y data will be released later at 1500 (SGT).

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

Also, the UK flash PMI data will be released later at 1730 (SGT).

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

Currently, GBP/USD is testing the resistance zone of 1.34600 next the next support zone is at 1.32200.
With the ongoing negotiation of the post-Brexit trade deal, look for short-term selling opportunities of GBP/USD if it rejects the resistance zone of 1.34600.