GBP/USD Forecast – Can British Pound Break 1.3200 Vs US Dollar?
- – The British Pound is slowly moving higher from the 1.3070 swing low against the US Dollar.
- – There is a monster bearish trend line forming with resistance at 1.3190-1.3200 on the hourly chart of the GBP/USD pair.
- – Today in the US, the Net Long-Term TIC Flows report for Sep 2017 was released by the US Department of Treasury.
- – The outcome was above the forecast of $34.6B as the net flows were $80.9B.
US Net Long-Term TIC Flows
Recently in the US, the Net Long-Term TIC Flows report for Sep 2017 was released by the US Department of Treasury. The market was positioned for the Net Long-Term TIC Flows to be around $34.6B compared with the last $67.2B.
The actual result was above the forecast of $34.6B as the net flows were $80.9B. The last reading was also revised up from $67.2B to $73.2B. Moreover, the total Net TIC Flows posted a rise from the last revised reading of $130.2B to $51.3B. The report added that:
The sum total in September of all net foreign acquisitions of long-term securities, short-term U.S. securities, and banking flows was a monthly net TIC outflow of $51.3 billion. Of this, net foreign private outflows were $17.3 billion, and net foreign official outflows were $34.0 billion.
Overall, the GBP/USD pair may find it very difficult to move above the 1.3200 resistance in the near term.
GBP/USD Technical Analysis
The British Pound after a major decline found support near 1.3070 against the US Dollar. Later, the GBP/USD pair started an upside move and traded above the 1.3100 handle and settled above the 100 hourly simple moving average.
At the moment, the pair is above 1.3150, but facing a monster bearish trend line with resistance at 1.3190-1.3200 on the hourly chart. The same trend line prevented gains on many occasions and now stopping a break above 1.3200. The pair is currently correcting lower and moved below the 23.6% Fib retracement level of the last wave from the 1.3133 low to 1.3187 high.
On the downside, there is a connecting trend line support at 1.3150 along with the 100 hourly SMA. An intermediate support is near the 50% Fib retracement level of the last wave from the 1.3133 low to 1.3187 high at 1.3160.
As long as the pair is above the 1.3150 support and the 100 hourly SMA, there can be an attempt to move above 1.3200 in the near term.
