GBP/USD Forecast – Range Moves Head of Break in Pound to Dollar
- – The British Pound after a decline towards 1.2650 found support against the US Dollar.
- – There is a contracting triangle pattern with resistance at 1.2800 forming on the hourly chart of GBP/USD.
- – Today in the UK, the Rightmove House Price Index for June 2017 was released, which posted a decline of 0.4% (MoM).
UK’s Rightmove House Price Index
Recently in the UK, the Rightmove House Price Index for June 2017 was released. The market was positioned for a minor decline of 0.1% in the HPI compared with the previous month.
However, the actual result was on the lower side, as the decline was 0.4% (MoM). Looking at the yearly change, the forecast was an increase of 2% in June 2017 compared with June 2016. The actual was on the lower side, as the increase was +1.8% only.
Overall, the result was below the forecast, but there was no negative impact on the GBP/USD pair, as it remained above the 1.2750 support.
GBP/USD Technical Analysis
The British Pound was under pressure this past week, as it remained below the 1.2800 resistance against the US Dollar. The GBP/USD pair was seen trading towards 1.2650 where it found buyers and started an upside move.
The pair corrected well, and moved above the 1.2700 resistance and the 100 hourly simple moving average. The pair traded as high as 1.2804 where it faced a trend line resistance. It moved down and tested the 38.2% Fib retracement level of the last wave from the 1.2691 low to 1.2804 high.
On the downside, the 100 hourly simple moving average is a major support at 1.2750. It also coincide with the 50% Fib retracement level of the last wave from the 1.2691 low to 1.2804 high. It seems like there is a contracting triangle pattern with resistance at 1.2800 forming on the hourly chart. The pair may consolidate for some time inside the triangle with support at 1.2750 and 1.2735. Once it succeeds in a break and close above 1.2800, there can be more upsides towards the 1.2850 in the near term.
