GBP/USD Forecast – British Pound Could Decline Further Vs US Dollar

GBP/USD Forecast – British Pound Could Decline Further Vs US Dollar

  • – The British Pound failed to break the 1.3280-1.3300 resistance area and declined against the US Dollar.
  • – There is a major bearish trend line in place with resistance at 1.3225 on the hourly chart of the GBP/USD pair.
  • – Recently in the UK, the RICS Housing Price Balance report for June 2018 was released by the Royal Institution of Chartered Surveyors.
  • – The outcome was above the forecast of -2% as there was a rise in the RICS Housing Price by 2% in June 2018.

 

UK RICS Housing Price Balance

Recently in the UK, the RICS Housing Price Balance report for June 2018 was released by the Royal Institution of Chartered Surveyors. The market was positioned for a decline of around 2% the RICS Housing Price in June 2018.

 

The actual was above the forecast of -2% as there was a rise in the RICS Housing Price by 2% in June 2018. It was also better when compared with the last decline of -3%. The report added that:

 

Activity indicators suggest subdued picture in the market will persist, improvement in new properties coming to the market likely to be very short-lived, and rent expectations consistent with the lack of new supply.

 

The GBP/USD pair is currently under bearish pressure and it seems like the pair could extend losses towards the 1.3160 level in the near term.

 

GBP/USD Technical Analysis

The British Pound started an upside correction from the 1.3189 low against the US Dollar. The GBP/USD pair traded above the 1.3250 resistance and the 100 hourly simple moving average. However, the pair faced a strong resistance near the 1.3280-1.3300 zone.

 

GBP/USD Technical Analysis British Pound US Dollar

 

As a result, the pair declined sharply and broke the 1.3250 support and the 100 hourly SMA. The pair also broke the 76.4% fib retracement level of the last wave from the 1.3189 low to 1.3300 high. It is currently trading near the 1.3289 swing low and it remains at a risk of more losses.

 

A downside break could push the pair towards the 1.236 Fib extension level of the last wave from the 1.3189 low to 1.3300 high at 1.3162. Below this, the pair may perhaps test the 1.3150 level.

 

On the upside, an initial resistance is near the 1.3220 resistance, above which, there is a major bearish trend line in place with resistance at 1.3225 on the hourly chart of the GBP/USD pair.


Also published on Medium.

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