- – The British Pound popped higher recently against the US Dollar and moved above 1.2500.
- – The GBPUSD pair has formed a nice support at 1.2520 and a bullish trend line on the hourly chart.
- – The US Wholesale Inventories figure for Feb 2017 (Preliminary) will be released by the US Census Bureau today, which is forecasted to decline by 0.2%.
US Wholesale Inventories
Today during the NY session, there are a few economic releases aligned in the US like Consumer Confidence, Wholesale Inventories, Goods Trade Balance and S&P/Case-Shiller Home Price Indices.
First, the US Wholesale Inventories figure for Feb 2017 (Preliminary) will be released by the US Census Bureau. It is forecasted to post a decline of around 0.2% in Feb 2017. Similarly, the US Consumer Confidence is forecasted to decrease from 114.8 to 113.8. On the other hand, the S&P/Case-Shiller Home Price Indices are forecasted to increase by 5.7% in Jan 2017, compared with the same month a year ago. The last reading stands at 5.6%.
Overall, the US Dollar might move substantially later today, and we could witness more gains in GBPUSD towards 1.2600 if reports disappoint.
GBP/USD Technical Analysis
The British Pound after a couple of swing moves against the US Dollar found buyers near 1.2470, and moved higher. It was the 100 hourly simple moving average at 1.2465 that prevented further declines and helped the GBP/USD pair in gaining bids.
The pair moved higher and traded as high as 1.2612 where it found a connecting bearish trend line. It is once again moving lower and traded below 23.6% Fib retracement level of the last wave from the 1.2468 low to 1.2612 high.
However, the pair found support at 50% Fib retracement level of the last wave from the 1.2468 low to 1.2612 high, and moved higher. The pair is currently about to challenge the 1.2600 handle. And, if it corrects lower, it might find bids at 1.2560-50. The hourly RSI is well above the 50 level for GBP/USD, which is a positive sign. On the upside, above 1.2600, the last swing high at 1.2612 is the next resistance.Tags: British Pound, GBP/USD Technical Analysis, US Dollar