GBP/USD Forecast – British Pound Bearish Within Range Vs US Dollar
- – The British Pound traded in a range below the 1.2915 resistance against the US Dollar.
- – There is a crucial expanding triangle pattern with resistance near 1.2915 forming on the hourly chart of GBP/USD.
- – Today in the UK, the Net Borrowing report for July 2017 was released by the National Statistics.
- – The outcome was above the forecast of £-0.200B, as the Net Borrowing came in at £-0.760B.
UK’s Net Borrowing
Recently in the UK, the Net Borrowing report for July 2017 was released by the National Statistics. The market was positioned for the Net Borrowing to post £-0.200B, compared with the last £-6.218B.
However, the actual result was above the forecast of £-0.200B, as the Net Borrowing came in at £-0.760B. On the other hand, the last reading was revised from £-6.218B to £5.673B. When we exclude public sector banks, the Public sector net borrowing declined by £27.0 billion to £45.1 billion. The report added that:
Public sector net debt (excluding public sector banks) was £1,758.3 billion at the end of July 2017, equivalent to 87.5% of gross domestic product (GDP), an increase of £143.9 billion (or 4.5 percentage points as a ratio of GDP) on July 2016.
Overall, the GBP/USD pair might recover a few pips in the near term, but the 1.2900-1.2915 levels are likely to prevent gains.
GBP/USD Technical Analysis
The British Pound mostly trading in an expanded range with a monster resistance near 1.2915 against the US Dollar. Recently, the GBP/USD pair traded close to the 1.2915 level where it faced sellers and moved down below the 100 hourly simple moving average.
The pair traded below the 1.2880 support and formed a low at 1.2841. There is a chance of a minor correction towards the 38.2% Fib retracement level of the last decline from the 1.2916 high to 1.2841 low.
However, there is a connecting bearish trend line at 1.2900, which is likely to act as a major hurdle. Moreover, the 50% Fib retracement level of the last decline from the 1.2916 high to 1.2841 low along with the 100 hourly simple moving average at 1.2878 is also a major resistance.
Overall, selling rallies in the near term towards the 1.2900-10 levels with a stop above a crucial expanding triangle pattern with resistance near 1.2915 on the hourly chart.
