GBP/USD Forecast –British Pound Eyeing Further Gains Above 1.3080 Vs US Dollar
- – The British Pound is trading nicely above the 1.3000 support area against the US Dollar.
- – There is a major bullish trend line in place with support at 1.3020 on the hourly chart of the GBP/USD pair.
- – Recently in China, the new loans figure for August 2018 was released by People’s Bank of China.
- – The outcome was below the market forecast of 1,300B as the new loans came in at 1,280B.
China’s New Loans Report
Recently in China, the new loans figure for August 2018 was released by People’s Bank of China. The market was positioned for the new loans figure to be around 1,300B in August 2018.
The actual result was below the market forecast of 1,300B as the new loans came in at 1,280B. This was also below the last reading of 1,450B. Looking at the M2 Money Supply, there was a rise of 8.2% in August 2018 (YoY), less than the forecast of 8.5%.
The GBP/USD pair is currently placed nicely in an uptrend above the 1.3000 handle and it seems like the pair could make an attempt to climb above 1.3100.
GBP/USD Technical Analysis
The British Pound recently found support near the 1.2910 level against the US Dollar. The GBP/USD pair started an upside move, broke the 1.2950 and 1.3000 resistance levels, and finally settled above the 100 hourly simple moving average.
The pair even broke the 1.3050 resistance and traded as high as 1.3082. Later, there was a downside correction and the pair broke the 23.6% Fib retracement level of the last wave from the 1.2979 low to 1.3082 high.
However, there are many supports on the downside near the 1.3030 and 1.3020 levels. The 50% Fib retracement level of the last wave from the 1.2979 low to 1.3082 high is an initial support near the 1.3030 level.
Moreover, there is a major bullish trend line in place with support at 1.3020 on the hourly chart of the GBP/USD pair. The trend line support is also above the 100 hourly SMA and the 1.3000 handle. Therefore, if the pair corrects lower, it could find support near 1.3020. On the upside, it may soon make an attempt to break the 1.3080 and 1.3100 resistance levels.
Also published on Medium.
