GBP/USD Forecast – British Pound To Surge above 1.4200 Vs US Dollar?
- – The British Pound is trading in a bullish zone and is currently well above 1.4150 against the US Dollar.
- – There is a major bullish trend line forming with support at 1.4170 on the hourly chart of the GBP/USD pair.
- – Recently in China, the Consumer Price Index for March 2018 was released by the National Bureau of Statistics of China.
- – The outcome was below the forecast of -0.5% as there was a decline in the CPI by 1.1% (MoM).
China’s CPI
Recently in China, the Consumer Price Index for March 2018 was released by the National Bureau of Statistics of China. The market was positioned for a decline of 0.5% in the CPI in March 2018 compared with the previous month.
The actual was below the forecast of -0.5% as there was a decline in the CPI by 1.1%. Looking at the yearly change, there was a rise of 3.1% in the CPI in March 2018, which was also below the forecast of +3.2%, and also below the last increase of 3.7%.
The GBP/USD pair is currently placed nicely in a bullish trend and it may continue to rise towards 1.4200 in the near term.
GBP/USD Technical Analysis
The British Pound started a nice upside move from well below the 1.4100 level against the US Dollar. The GBP/USD pair gained upside momentum, traded above the 1.4150 resistance, and it also settled above the 100 hourly simple moving average.
The pair recently traded close to the 1.4190 level where it found resistance. It corrected lower and tested the 38.2% Fib retracement level of the last wave from the 1.4077 low to 1.4188 high. However, the downside move was protected by the 1.4130-40 zone.
The pair is now back in a bullish zone above 1.4150 and it looks set for more gains above 1.4180. On the downside, there is a major bullish trend line forming with support at 1.4170 on the hourly chart of the GBP/USD pair.
Therefore, the pair remains well supported above the 1.4150-60 levels. On the upside, a break above the 1.4188 high could open the doors for a push above the 1.4200 level in the near term.
Also published on Medium.
