GBP/USD Forecast –British Pound Recovery Faces Hurdles Vs US Dollar

GBP/USD Forecast –British Pound Recovery Faces Hurdles Vs US Dollar

  • – The British Pound tumbled recently and broke the 1.2920 support area against the US Dollar.
  • – There is a major bearish trend line in place with resistance near 1.2935 on the hourly chart of the GBP/USD pair.
  • – Recently in the UK, the RICS Housing Price Balance for July 2018 was released by the Royal Institution of Chartered Surveyors.
  • – The outcome was around the market forecast, as there was a rise of 4% in the RICS Housing Price Balance.

 

UK RICS Housing Price Balance

Recently in the UK, the RICS Housing Price Balance for July 2018 was released by the Royal Institution of Chartered Surveyors. The market was positioned for a rise of around 4% in the RICS Housing Price Balance.

 

The actual was around the market forecast, as there was a rise of 4% in the RICS Housing Price Balance. The current reading was also above the last revised reading of 3% (up from 2%). The report added that:

 

Lettings data continues to underline the impact of tax changes on supply of property to rent. Sales market remains broadly flat at the national level.

 

The GBP/USD pair remains in a bearish trend and it seems like the current correction wave could face a lot of sellers on the upside near 1.2900 and 1.2920.

 

GBP/USD Technical Analysis

The British Pound declined heavily from well above the 1.3000 handle against the US Dollar. The GBP/USD pair broke the 1.2950, 1.2920 and 1.2900 support levels to settle below the 100 hourly simple moving average.

 

GBP/USD Technical Analysis British Pound US Dollar

 

The pair traded as low as 1.2851 and it is currently correcting higher. It recovered above the 23.6% fib retracement level of the last decline from the 1.2959 high to 1.2851 low. There was also a break above a short-term bearish trend line with resistance at 1.2875.

 

It seems like the pair may perhaps correct above the 1.2890 level in the near term. However, it is likely to face a lot of sellers near the 1.2900 and 1.2920 levels. Moreover, the 50% fib retracement level of the last decline from the 1.2959 high to 1.2851 low is also at 1.2905.

 

Finally, there is a major bearish trend line in place with resistance near 1.2935 on the hourly chart of the GBP/USD pair. Therefore, recoveries are likely to face many hurdles on the upside near 1.2900 and 1.2920.


Also published on Medium.

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