GBP/USD Forecast – British Pound Remains Buy on Dips Vs US Dollar
- – The British Pound made a nice upside move and broke the 1.4100 resistance against the US Dollar.
- – There is a major bullish trend line forming with support at 1.4080 on the hourly chart of the GBP/USD pair.
- – Recently in the US, the Feb interest rate decision March 2018 was released.
- – The outcome was around the forecast, as the central bank increased rates from 1.5% to 1.75%.
Feb Interest Rate Decision
Recently in the US, the Feb interest rate decision March 2018 was released. The market was positioned for an increase in the interest rates in March 2018 from 1.50% to 1.75%.
The actual result was around the forecast, as the central bank increased rates from 1.5% to 1.75%. Moreover, the US Existing Home Sales report for Feb 2018 was released by the National Association of Realtors. The outcome was positive as there was a rise of 3% in sales compared with the forecast of +0.5% (MoM).
The GBP/USD pair is currently placed nicely in an uptrend and any dips from the current levels remain supported above 1.4100.
GBP/USD Technical Analysis
The British Pound started a major uptrend from the 1.3980 swing low against the US Dollar. The GBP/USD pair surged higher and cleared many hurdles on the way up such as 1.4000, 1.4080, 1.4100 and the 100 hourly simple moving average.
The pair even traded above the 1.4150 level and it recently formed a high at 1.4170. At the moment, it is correcting lower with an initial support around the 23.6% Fib retracement level of the last wave from the 1.3982 low to 1.4170 high.
On the downside, there is also a major bullish trend line forming with support at 1.4080 on the hourly chart of the GBP/USD pair. The same trend line is near the 38.2% Fib retracement level of the last wave from the 1.3982 low to 1.4170 high.
Therefore, it seems like the pair remains well supported around the 1.41000 level. Any dips from the current levels could find buyers near the 1.4125, 1.4100 and 1.4080 support levels in the near term.
Also published on Medium.
