- – The British Pound made a nice upside move recently and it traded above 1.4300 against the US Dollar before starting a correction.
- – There is a short term bearish trend line forming with resistance at 1.4175 on the hourly chart of the GBP/USD pair.
- – Recently in the UK, the Gross Domestic Product report for Q4 2017 (prelim) was released by the National Statistics.
- – The outcome was above the forecast of 0.4% as the GDP grew by 0.5% (QoQ).
UK Gross Domestic Product
Recently in the UK, the Gross Domestic Product report for Q4 2017 (prelim) was released by the National Statistics. The market was positioned for a growth of 0.4% in Q4 2017 compared with the previous quarter.
The actual result was above the forecast of 0.4% as the GDP grew by 0.5% (QoQ). In terms of the yearly change, there was an increase of 1.5% in the GDP, which was more than the forecast of 1.4%, but it was less than the last 1.7%.
The GBP/USD pair is moving nicely in an uptrend with a major support on the downside around the 1.4080 level.
GBP/USD Technical Analysis
The British Pound traded sharply higher this past week and traded above the 1.4300 level against the US Dollar. The GBP/USD pair broke the 1.4280 and 1.4300 resistances to trade as high as 1.4345.
Later, a downside move was initiated, but the pair found support near 1.4080. At the moment, the pair is moving inside a range above the 1.4080 level and is currently showing a lot of positive signs. The recent low was 1.4108 and the pair is trading near the 100 hourly simple moving average.
The pair is currently attempting an upside break above the 23.6% Fib retracement level of the last decline from the 1.4286 high to 1.4108 low. On the upside, there is a short term bearish trend line forming with resistance at 1.4175 on the hourly chart.
The trend line resistance is important along with the 38.2% Fib retracement level of the last decline from the 1.4286 high to 1.4108 low. A break and close above 1.4175-1.4180 could ignite a fresh upside wave in the near term.
Also published on Medium.Tags: British Pound, GBP/USD, GBP/USD Technical Analysis, US Dollar