How to trade GBP/USD on December 17?

While the EUR/USD currency pair moved from side to side before the results of the Federal Reserve meeting were announced, following them, the GBP/USD pair stuck to its routine. Since the quotes still got out of the downward channel, the trend changed to an upward one.

Hourly chart of the GBP/USD pair

The British pound continues to rise no matter what. Everyone is so tired of the topic of negotiations on a trade deal between the UK and the European Union that they don't even want to think about it. All the same, there has been no progress. And the pound is still growing, despite all the negativity on this topic. A rather important inflation report was also published in the UK today, showing a decline to 0.3% y/y in November. This is certainly very bad for the British economy, but the pound doesn't care. It grew in the morning when this report came out. The UK Services PMI slightly rose from November, but still remained below 50.0. US retail sales fell by 1.1% in November, which is much worse than expected, and PMIs in the services and manufacturing sectors were neutral. But the dollar was still appreciating in the afternoon.

Important announcements and economic reports that you can always find in the news calendar can seriously influence the trajectory of a currency pair. Therefore, at the time of their release, we recommended trading as carefully as possible or exit the market in order to avoid a sharp price reversal.