GBP/USD Forecast – British Pound To Surge above 1.4200 Vs US Dollar?

GBP/USD Forecast – British Pound To Surge above 1.4200 Vs US Dollar?

  • – The British Pound is trading in a bullish zone and is currently well above 1.4150 against the US Dollar.
  • – There is a major bullish trend line forming with support at 1.4170 on the hourly chart of the GBP/USD pair.
  • – Recently in China, the Consumer Price Index for March 2018 was released by the National Bureau of Statistics of China.
  • – The outcome was below the forecast of -0.5% as there was a decline in the CPI by 1.1% (MoM).

 

China’s CPI

Recently in China, the Consumer Price Index for March 2018 was released by the National Bureau of Statistics of China. The market was positioned for a decline of 0.5% in the CPI in March 2018 compared with the previous month.

 

The actual was below the forecast of -0.5% as there was a decline in the CPI by 1.1%. Looking at the yearly change, there was a rise of 3.1% in the CPI in March 2018, which was also below the forecast of +3.2%, and also below the last increase of 3.7%.

 

The GBP/USD pair is currently placed nicely in a bullish trend and it may continue to rise towards 1.4200 in the near term.

 

GBP/USD Technical Analysis

The British Pound started a nice upside move from well below the 1.4100 level against the US Dollar. The GBP/USD pair gained upside momentum, traded above the 1.4150 resistance, and it also settled above the 100 hourly simple moving average.

 

GBP/USD Technical Analysis British Pound US Dollar

 

The pair recently traded close to the 1.4190 level where it found resistance. It corrected lower and tested the 38.2% Fib retracement level of the last wave from the 1.4077 low to 1.4188 high. However, the downside move was protected by the 1.4130-40 zone.

 

The pair is now back in a bullish zone above 1.4150 and it looks set for more gains above 1.4180. On the downside, there is a major bullish trend line forming with support at 1.4170 on the hourly chart of the GBP/USD pair.

 

Therefore, the pair remains well supported above the 1.4150-60 levels. On the upside, a break above the 1.4188 high could open the doors for a push above the 1.4200 level in the near term.

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