LMFX PAMM


Forex broker List

  • GBP/USD Forecast – Can British Pound Hold Gains Vs US Dollar?

    GBP/USD Forecast – Can British Pound Hold Gains Vs US Dollar?

    • – The British Pound traded higher this past week and moved above 1.3800 against the US Dollar.
    • – There is a short term connecting bullish trend line forming with support at 1.3840 on the hourly chart of the GBP/USD pair.
    • – Recently in the UK, the Retail Sales report for Dec 2017 was released by the National Statistics.
    • – The outcome was below the forecast of -0.6% as there was a decline in sales by 1.5% (MoM).

     

    UK Retail Sales

    Recently in the UK, the Retail Sales report for Dec 2017 was released by the National Statistics. The market was positioned for a decline of around 0.6% in Dec 2017 compared with the previous month.

     

    The actual result was below the forecast of -0.6% as there was a decline in sales by 1.5%. In terms of the yearly change, there was an increase of 1.4% in sales, which was less than the forecast of 3.0%. However, it was around the last revised reading of 1.5%.

     

    The GBP/USD pair is currently correcting lower, but it has to stay above the 1.3840 level to remain in the bullish zone.

     

    GBP/USD Technical Analysis

    The British Pound made a decent upside move and traded above 1.3800 and 1.3900 resistance levels against the US Dollar. The GBP/USD pair traded as high as 1.3944 before it started a downside correction from the mentioned level.

     

    GBP/USD Technical Analysis British Pound US Dollar

     

    The pair corrected lower and is currently trading below the 1.3900 level. It is testing the 23.6% Fib retracement level of the last wave from the 1.3536 low to 1.3944 high. On the downside, there is a short term connecting bullish trend line forming with support at 1.3840 on the hourly chart.

     

    The trend line support at 1.3840 is also around the 100 hourly simple moving average. Therefore, the 1.3830-40 levels hold a lot of importance for the next move. A break below 1.3830 and the 100 hourly SMA could call for a test of the 50% Fib retracement level of the last wave from the 1.3536 low to 1.3944 high at 1.3740.

     

    On the upside, an initial resistance is at 1.3900. Above 1.3900, the pair may test the 1.3944 high.

    Tags: , , , ,

    Like what you've read?

    Join thousands of other traders who receive our newsletter containing; market updates, tutorials, learning articles, strategies and more.

    Previous Entry   Next Entry

  • GBP/USD Forecast – British Pound Soars Post UK’s Retail Sales

    GBP/USD Forecast – British Pound Soars Post UK’s Retail Sales

    • – The British Pound gained momentum today, and moved above the 1.30 resistance against the US Dollar.
    • – The GBP/USD pair broke a major connecting resistance trend line at 1.3000 to open the doors for more upsides.
    • – Today in the UK, the Retail Sales Change for April 2017 (MoM) released by the National Statistics posted an increase of 2.3%.

     

    UK Retail Sales

    In the UK today, the Retail Sales Change for April 2017 was released by the National Statistics. The market was positioned for the Retail Sales to increase by 1% in April 2017, compared with the previous month.

     

    However, the result was well above the forecast, as the UK’s Retail Sales increased 2.3%. In terms of the yearly change, there was an increase of 4% in April 2017, more than the forecast of 2%. The report highlighted that “In April 2017, the quantity bought in the retail industry increased by 2.3% compared with March 2017 and by 4.0% compared with April 2016. The underlying pattern, as measured by the 3 month on 3 month estimate, showed a slight increase in April 2017 following a short period of contraction, increasing by 0.3%”.

     

    Overall, the GBP/USD pair may continue to gain momentum and could trade towards 1.3080 in the near term.

     

    GBP/USD Technical Analysis

    The British Pound was slowly moving higher and after the release of the UK Retail Sales of April 2017, there was an increase in the momentum and it broke the 1.30 resistance against the US Dollar. The GBPUSD traded as high as 1.3044 where there was a minor selling pressure.

     

    GBP/USD Technical Analysis British Pound US Dollar

     

    During the upside move, the pair broke a major connecting resistance trend line at 1.3000 on the hourly chart. If the pair corrects lower, it may find support around the 23.6% Fib retracement level of the last wave from the 1.2936 low to 1.3044 high.

     

    However, the same broken trend line and 1.3000 handle may act as a strong support on the downside. And, the 38.2% Fib retracement level of the last wave from the 1.2936 low to 1.3044 high is at 1.3003. So, we have many support levels near 1.30, waiting to act as a barrier for sellers if the pair moves down in the near term.

    Tags: , , ,

    Like what you've read?

    Join thousands of other traders who receive our newsletter containing; market updates, tutorials, learning articles, strategies and more.

    Previous Entry   Next Entry

Join Our Newsletter:

US & Canadian Traders Welcome Make the trade