GBP/USD Forecast – British Pound Consolidating Gains Vs US Dollar

GBP/USD Forecast – British Pound Consolidating Gains Vs US Dollar

  • – The British Pound after a nice upside drift towards 1.2900 against the US Dollar found resistance.
  • – The GBP/USD pair is currently consolidating gains, and trading in a channel with resistance at 1.2830 on the hourly chart.
  • – Today, the UK’s Net Borrowing for March 2017 released by the National Statistics posted £4.365B, a lot more than the forecast of £1.500B.

 

UK’s Net Borrowing

Today in the UK, the Net Borrowing for March 2017 was released by the National Statistics. The market was positioned for a reading of £1.500B in March 2017, compared with the last £1.100B.

 

However, the result was on the lower side, as the Net Borrowing stood at £4.365B, a lot more than the forecast of £1.500B. On the other hand, the last reading was revised down from £1.100B to £-0.656B. So, the overall decline was a lot more. The report highlighted that “Public sector net borrowing (excluding public sector banks) decreased by £20.0 billion to £52.0 billion in the financial year ending March 2017 (April 2016 to March 2017), compared with the financial year ending March 2016; this is the lowest net borrowing since the financial year ending March 2008”.

 

There was no major move in British Pound and GBP/USD, but the pair may surge higher once more towards 1.2900.

 

GBP/USD Technical Analysis

The British Pound gained traction lately and moved above the 1.2760 and 1.2800 resistance levels against the US Dollar. The GBP/USD pair traded as high as 1.2905 before starting a minor downside move.

 

GBP/USD Technical Analysis British Pound US Dollar

 

The pair moved down below the 23.6% Fib retracement level of the last wave from the 1.2514 low to 1.2905 high. However, the downside was limited, as the pair found support at 1.2760 and the 100 hourly simple moving average.

 

Moreover, the 38.2% Fib retracement level of the last wave from the 1.2514 low to 1.2905 high also prevented the downside move and held losses. At the moment, the pair is mostly consolidating gains, and trading in a channel with resistance at 1.2830 on the hourly chart. Once the consolidation completes, there is a chance of GBP/USD breaking the 1.2830 resistance for a move towards 1.2880 or 1.2900.

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