GBP/USD Forecast – British Pound Downsides Remain Supported Vs US Dollar

GBP/USD Forecast – British Pound Downsides Remain Supported Vs US Dollar

  • – The British Pound surged higher this week and traded as high as 1.3328 against the US Dollar.
  • – The GBP/USD pair recently broke an ascending channel with support at 1.3310 on the hourly chart.
  • – Today in the UK, the Claimant Count Change for August 2017 was released by the National Statistics.
  • – The outcome was above the forecast of 0.6K, as the change was -2.8K.

 

UK’s Claimant Count Change

Recently in the UK, the Claimant Count Change for August 2017 was released by the National Statistics. The market was positioned for a change of 0.6K in the Claimant Count.

 

However, the actual result was above the forecast 0.6K, as the change was -2.8K. The ILO Unemployment Rate also posted a decline in July 2017 (3M) from 4.4% to 4.3%. The report added that:

 

There were 1.46 million unemployed people (people not in work but seeking and available to work), 75,000 fewer than for February to April 2017 and 175,000 fewer than for a year earlier.

 

Overall, the GBP/USD pair might correct a few pips towards 1.3250-40 in the near term, but remains supported on the downside.

 

GBP/USD Technical Analysis

The British Pound is in a major uptrend as it traded above the 1.3250 level this week against the US Dollar. The GBP/USD pair even broke the 1.3300 handle today and traded as high as 1.3328 before facing tiny sell offers.

 

GBP/USD Technical Analysis British Pound US Dollar

 

The pair is currently correcting lower and already moved below the 23.6% Fib retracement level of the last wave from the 1.3160 low to 1.3328 high. Moreover, the pair broke an ascending channel with support at 1.3310 on the hourly chart.

 

It seems like the pair could correct further towards 1.3250, which is near the 50% Fib retracement level of the last wave from the 1.3160 low to 1.3328 high. Furthermore, there is a bullish trend line on the same chart at 1.3255.

 

Therefore, an extension of the current correction is likely to find support near 1.3250. Only a close below the 1.3240 level would call for a test of the 1.3200 support. On the upside, the pair faces an immediate resistance at 1.3310, followed by the last high at 1.3328.

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