GBP/USD Forecast – British Pound Remains in Downtrend Vs US Dollar

GBP/USD Forecast – British Pound Remains in Downtrend Vs US Dollar

  • – The British Pound struggled to correct higher and moved below the 1.3300 support against the US Dollar.
  • – There is a major bearish trend line formed with resistance at 1.3280 on the hourly chart of the GBP/USD pair.
  • – Recently in the UK, British Retail Consortium (BRC) Shop Price Index for May 2018 was released.
  • – The outcome was below the forecast of +1.0% as there was a decline in the index by 1.1%.

 

UK British Retail Consortium (BRC) Shop Price Index

Recently in the UK, British Retail Consortium (BRC) Shop Price Index for May 2018 was released. The market was positioned for a minor rise of 1% in the (BRC) Shop Price Index, compared with the last decline of 1%.

 

The actual result was below the forecast of +1.0% as there was a decline in the index by 1.1%, which was similar to the last reading of -1.1%. Overall, the result failed to help the British Pound in a short-term recovery.

 

The GBP/USD pair remains in a downtrend and any upsides are likely to be capped by the 1.3280 and 1.3300 resistance levels.

 

GBP/USD Technical Analysis

The British Pound started a major downside move from well above 1.3400 against the US Dollar. The GBP/USD pair declined and broke many supports on the way down such as 1.3300 and 1.3250 to settle below the 100 hourly simple moving average.

 

GBP/USD Technical Analysis British Pound US Dollar

 

The pair traded as low as 1.3209 before starting a short term correction. It moved above the 38.2% Fib retracement level of the last drop from the 1.3325 high to 1.3209 low. However, the upside move was capped by the 1.3265 level.

 

The stated 1.3265 level is also near the 50% Fib retracement level of the last drop from the 1.3325 high to 1.3209 low. Further above 1.3265, there is a major bearish trend line formed with resistance at 1.3280 on the hourly chart of the GBP/USD pair.

 

Therefore, if the pair corrects higher further, it is likely to face sellers on the upside near the 1.3280 level. On the downside, the 1.3230 and 1.3200 levels are strong supports for buyers.


Also published on Medium.

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