GBP/USD Forecast – British Pound Remains in Uptrend above 1.3330 Vs US Dollar
- – The British Pound is back in the bullish zone above the 1.3330 support against the US Dollar.
- – There is a crucial connecting trend line forming with resistance at 1.3390 on the hourly chart of the GBP/USD pair.
- – Recently in the UK, the British Retail Consortium (BRC) Shop Price Index for Nov 2017 was released.
- – The outcome was around the forecast as there was a decline in index by 0.1% in Nov 2017.
British Retail Consortium (BRC) Shop Price Index
Recently in the UK, the British Retail Consortium (BRC) Shop Price Index for Nov 2017 was released. The market was positioned for a decline of 0.1% in the index in Nov 2017, similar to the last reading.
The actual result was around the forecast as there was a decline in index by 0.1% in Nov 2017. Commenting on the same, the Chief Executive, British Retail Consortium, Helen Dickinson OBE, stated:
For the third consecutive month shop price inflation remained static, still teetering on the edge of a return to inflationary territory. November now marks the 55th consecutive month of deflation with the current rate the shallowest in the last four years.
Overall, the GBP/USD pair may continue to move higher and it could even break 1.3400 for more gains in the near term.
GBP/USD Technical Analysis
The British Pound made good ground recently and settled above 1.3300 and 1.3330 against the US Dollar. The GBP/USD pair declined sharply recently and traded close to the 1.3220 support where buyers appeared and pushed the pair back above 1.3300 and the 100 hourly simple moving average.
The pair traded as high as 1.3385 and is currently consolidating gains. An initial support on the downside is around the 23.6% Fib retracement level of the last wave from the 1.3220 low to 1.3385 high at 1.3345. Below 1.3345, the next major support is around 1.3330.
Further to the downside, the 38.2% Fib retracement level of the last wave from the 1.3220 low to 1.3385 high at 1.3345 is at 1.3322 along with the 100 hourly simple moving average to act as a buy zone.
On the upside, there is a crucial connecting trend line forming with resistance at 1.3390 on the hourly chart. A break above the 1.3390-1.3400 would open the doors for more gains in the short term.
Also published on Medium.
