GBP/USD Forecast – British Pound Dips Remain Supported Vs US Dollar

GBP/USD Forecast – British Pound Dips Remain Supported Vs US Dollar

  • – The British Pound is moving nicely in an uptrend above the 1.3120 support against the US Dollar.
  • – There is a major bullish trend line in place with support at 1.3155 on the hourly chart of the GBP/USD pair.
  • – Recently in the UK, the CBI Distributive Trades figure for July 2018 was released by the Confederation of British Industry.
  • – The outcome was above the forecast of +15% as the CBI Distributive Trades increased 20% (MoM).

 

UK CBI Distributive Trades

Recently in the UK, the CBI Distributive Trades figure for July 2018 was released by the Confederation of British Industry. The market was positioned for a rise of around 15% in July 2018 compared with the previous month.

 

The actual was above the forecast of +15% as the CBI Distributive Trades increased 20%. However, this was on the lower side when compared with the last increase of 32%.

 

The GBP/USD pair remained in an uptrend and is currently correcting lower towards the 1.3160 and 1.3150 support levels.

 

GBP/USD Technical Analysis

The British Pound formed a decent support base near 1.3000 and climbed higher against the US Dollar. The GBP/USD pair traded above the 1.3100 and 1.3150 resistance levels to position above the 100 hourly simple moving average.

 

GBP/USD Technical Analysis British Pound US Dollar

 

The pair traded above the 1.3200 level and a high was formed at 1.3212. Later, the pair started a downside correction and is currently trading near 1.3200. On the downside, an initial support is near the 23.6% fib retracement level of the last wave from the 1.3070 low to 1.3212 high.

 

Moreover, there is a major bullish trend line in place with support at 1.3155 on the hourly chart of the GBP/USD pair. The trend line support is close to the 38.2% fib retracement level of the last wave from the 1.3070 low to 1.3212 high.

 

Therefore, if the price corrects lower from the current levels, it is likely to find support near the 1.3150 and 1.3120 levels. On the upside, a break above the recent high at 1.3212 may perhaps open the doors for more gains. The next target could be the 1.3240 level, above which, the pair may well test 1.3260.


Also published on Medium.

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