GBP/USD Forecast – British Pound Remains Buy on Dips Near 1.2930
- The British Pound remained in an uptrend against the US Dollar and moved above 1.2900 handle.
- There is a crucial bullish trend line with support at 1.2930 forming on the hourly chart of GBP/USD.
- Today in the UK, the Consumer Credit for May 2017 was released by the Bank of England.
- The outcome was positive, as the Credit came in at £1.732B, more than the forecast of £1.400B.
UK’s Consumer Credit
Recently in the UK, the Consumer Credit for May 2017 was released by the Bank of England. The market was positioned for the credit to be £1.400B in May 2017, compared with the last £1.525B.
However, the actual result was positive, as the Credit came in at £1.732B, more than the forecast of £1.400B. On the other hand, the last reading was revised down from £1.525B to £1.483B. The report added that “Broad money increased by £8.1 billion in May. While the 12-month growth rate for broad money overall has been at around the current level since November 2016, the growth in households’ money has continued to weaken and private non-financial corporations’ (PNFCs’) has strengthened”.
Overall, the result was mixed, and if GBP/USD trades lower in the near term, it may find support around the 1.2930-20 levels.
GBP/USD Technical Analysis
The British Pound maintained a decent uptrend and moved above 1.2850 and 1.2900 against the US Dollar. The GBP/USD pair traded as high as 1.3007 where it faced sellers and currently correcting lower below the 1.2980 level.
The pair is trading well with an initial support around the 23.6% Fib retracement level of the last wave from the 1.2793 low to 1.3007 high. However, the most important support is near 1.2930. There is a crucial bullish trend line with support at 1.2930 forming on the hourly chart.
The trend line support also coincides with the 38.2% Fib retracement level of the last wave from the 1.2793 low to 1.3007 high.
So, if the pair moves down, buyers are likely to emerge near 1.2930-20. Buying dips remains a good option in the near term. Only a break and close below 1.2900 or the 50% Fib retracement level of the last wave from the 1.2793 low to 1.3007 high might call for more corrections.
Tags: British Pound, GBP/USD Technical Analysis, US Dollar