GBP/USD Forecast – British Pound In Monstrous Uptrend Vs US Dollar
- – The British Pound surged higher and moved above the 1.3200 handle against the US Dollar.
- – There is a monster bullish trend line with support at 1.3150 forming on the hourly chart of GBP/USD.
- – Today in the UK, the Manufacturing Purchasing Managers Index (PMI) for July 2017 was released by both the Chartered Institute of Purchasing & Supply and the Markit Economics.
- – The outcome was positive, as there was an increase of from the last revised reading of 54.2 to 55.1.
UK’s Manufacturing PMI
Recently in the UK, the Manufacturing Purchasing Managers Index (PMI) for July 2017 was released by both the Chartered Institute of Purchasing & Supply and the Markit Economics. The market was positioned for a no change in the PMI from the last reading of 54.3.
However, the actual result was positive, as there was an increase to 55.1. The last reading was revised down from 54.3 to 54.2. There was a strong performance, which boosted the new orders in July 2017. The report added that:
The rate of expansion in new orders accelerated during July. However, the improvement in the pace of increase was still among the slowest registered over the past year. This was despite a significant boost from the trend in new export business, as foreign demand rose at the second-strongest rate in the series history, beaten only by that recorded in April 2010.
Overall, the result was positive, which may continue to help the GBP/USD pair for more gains towards 1.3250 in the near term.
GBP/USD Technical Analysis
The British Pound remains in a solid uptrend and moved above the 1.3150 and 1.3200 resistance levels against the US Dollar. The GBP/USD pair traded to a new monthly high of 1.3239 recently where sellers protected more gains.
At the moment, the pair is following an ascending channel pattern with support at 1.3210 on the hourly chart. The channel support is also near the 23.6% Fib retracement level of the last wave from the 1.3096 low to 1.3239 high.
Moreover, on the downside, there is a monster bullish trend line with support at 1.3150 forming on the hourly chart of GBP/USD. The 50% Fib retracement level of the last wave from the 1.3096 low to 1.3239 high is also around 1.3165.
So, if the pair corrects lower, the channel support at 1.3210 and then the 1.3180-65 area may act as a strong support levels.
