- – The British Pound managed to stay above the 1.2930 support area against the US Dollar.
- – There is a major ascending channel pattern with support at 1.2910 formed on the hourly chart of GBP/USD.
- – Recently in the UK, the RICS Housing Price Balance survey for May 2017 released by the Royal Institution of Chartered Surveyors posted an increase of 17%.
RICS Housing Price Index
Recently in the UK, the RICS Housing Price Balance survey for May 2017 was released by the Royal Institution of Chartered Surveyors. The market was positioned for an increase of 20% in May 2017, compared with the previous rise of 22%.
However, the actual result was below the forecast, the increase was 17% in May 2017. The impact of the release was not negative for the British Pound and GB/USD. The report stated that “Demand slips and new instructions from sellers decline further in May. Agreed sales continue to drop. National price growth eases and expectations remain subdued”.
It looks like the GBP/USD pair is likely to head higher in the near term as long as it remains above the 1.2900 handle.
GBP/USD Technical Analysis
The British Pound suffered losses towards 1.2760 against the US Dollar before finding support and recovering above the 1.2850 level. The GBP/USD pair moved higher and traded above the 1.2900 handle to register a steady uptrend.
At present the pair is following a major ascending channel pattern with support at 1.2910 on the hourly chart. On the downside, the 100 hourly simple moving average is also near 1.2900. So, overall the trend is bullish and losses near 1.2920-00 remains supported. An immediate support is around the 23.6% Fib retracement level of the last wave from the 1.2871 low to 1.2968 high.
The next major support on the downside is at 1.2920, which coincides with the 50% Fib retracement level of the last wave from the 1.2871 low to 1.2968 high. As long as the pair is following the highlighted channel support, there are chances of more gains above 1.2950. The pair could even break 1.3000 if buyers remain in action. Above 1.3000, the next hurdle is around the 1.3050 level.Tags: British Pound, GBP/USD Technical Analysis, US Dollar