GBP/USD Forecast – British Pound Eyeing Further Gains Vs US Dollar

GBP/USD Forecast – British Pound Eyeing Further Gains Vs US Dollar

  • – The British Pound after forming a bottom at 1.3060-80 against the US Dollar moved higher.
  • – There is a crucial ascending channel forming with current support at 1.3260 on the hourly chart of the GBP/USD pair.
  • – Today in China, the Caixin Manufacturing PM for Oct 2017 was released.
  • – The outcome was in line with the forecast of 51.0, as there was no change in the PMI from 51.0.

 

China’s Caixin Manufacturing PMI

Recently in China, the Caixin Manufacturing PMI for Oct 2017 was released. The market was positioned for no change in the PMI from the last reading of 51.0 in Oct 2017.

 

The actual result was in line with the forecast of 51.0, as there was no change in the PMI from 51.0. There was not much rise in the output, but the new orders growth was steady. The report added that:

 

While new orders rose at a slightly quicker pace, production increased at the softest rate for four months. At the same time, companies continued to shed staff amid reports of company-downsizing policies and efforts to raise efficiency.

 

Overall, the market sentiment is positive and likely to keep GBP/USD above the 1.5250 support area in the short term.

 

GBP/USD Technical Analysis

The British Pound after tumbling towards the 1.3050 support against the US Dollar found support. The GBP/USD pair started an upside move from the 1.3080 swing low and moved above the 1.3100 handle. It also broke the 1.3180 resistance and settled above the 100 hourly simple moving average.

 

GBP/USD Technical Analysis British Pound US Dollar

 

It seems like the pair is following a crucial ascending channel with current support at 1.3260 on the hourly chart. The pair recently traded as high as 1.3291 before starting a short term correction. It tested the 23.6% Fib retracement level of the last wave from the 1.3196 low to 1.3291 high.

 

The downsides seem to be limited by the 1.3270 support and the 38.2% Fib retracement level of the last wave from the 1.3196 low to 1.3291 high.

 

Overall, the pair remains in an uptrend as long as above 1.3250. It could soon move above the 1.3290 level to break the 1.3300 sell wall in the near term.

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