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

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

  • – The British Pound is moving nicely with bullish moves above the 1.3210 support against the US Dollar.
  • – There is a key ascending channel formed with support at 1.3210 on the hourly chart of the GBP/USD pair.
  • – Recently in the UK, the Services PMI for June 2018 was released by both the Chartered Institute of Purchasing & Supply and the Markit Economics.
  • – The outcome was above the forecast of 54.0 as there was a rise in the PMI from 54.0 to 55.1.

 

UK Services PMI

Recently in the UK, the Services PMI for June 2018 was released by both the Chartered Institute of Purchasing & Supply and the Markit Economics. The market was positioned for no change in the PMI from the last reading of 54.0.

 

The actual was above the forecast of 54.0 as there was a rise in the PMI from 54.0 to 55.1. According to the report, there was a robust and accelerated upturn in business activity. More importantly, new work increases at fastest pace for 13 months. The report added that:

 

UK service providers indicated the fastest expansion of business activity for eight months in June, which continued the recovery in growth seen since March’s snow-related disruption. The latest upturn in service sector output was supported by the strongest increase in new work since May 2017.

 

The GBP/USD pair is currently placed nicely in a bullish trend and it is likely to move further higher above 1.3250 in the near term.

 

GBP/USD Technical Analysis

There was a strong buying interest above the 1.3020 support in the British Pound against the US Dollar. The GBP/USD pair formed a base, started an upside move, broke the 1.3150 and 1.3200 resistance levels, and settled above the 100 hourly simple moving average.

 

GBP/USD Technical Analysis British Pound US Dollar

 

The pair even recently traded as high as 1.3249 and is currently correcting lower. It has moved below the 23.6% fib retracement level of the last wave from the 1.3170 low to 1.3249 high. However, there are many supports on the downside near the 1.3200 level.

 

There is also a key ascending channel formed with support at 1.3210 on the hourly chart of the GBP/USD pair. The 50% fib retracement level of the last wave from the 1.3170 low to 1.3249 high is also near 1.3206 to act as a support.

 

Therefore, dips near the 1.3200 level remains supported. On the upside, resistances are seen at 1.3240 and 1.3250, followed by 1.3300.


Also published on Medium.

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