GBP/USD Forecast – British Pound Remains Buy on Dips Near 1.2930

GBP/USD Forecast – British Pound Remains Buy on Dips Near 1.2930

  • The British Pound remained in an uptrend against the US Dollar and moved above 1.2900 handle.
  • There is a crucial bullish trend line with support at 1.2930 forming on the hourly chart of GBP/USD.
  • Today in the UK, the Consumer Credit for May 2017 was released by the Bank of England.
  • The outcome was positive, as the Credit came in at £1.732B, more than the forecast of £1.400B.

 

UK’s Consumer Credit

Recently in the UK, the Consumer Credit for May 2017 was released by the Bank of England. The market was positioned for the credit to be £1.400B in May 2017, compared with the last £1.525B.

 

However, the actual result was positive, as the Credit came in at £1.732B, more than the forecast of £1.400B. On the other hand, the last reading was revised down from £1.525B to £1.483B. The report added that “Broad money increased by £8.1 billion in May.  While the 12-month growth rate for broad money overall has been at around the current level since November 2016, the growth in households’ money has continued to weaken and private non-financial corporations’ (PNFCs’) has strengthened”.

 

Overall, the result was mixed, and if GBP/USD trades lower in the near term, it may find support around the 1.2930-20 levels.

 

GBP/USD Technical Analysis

The British Pound maintained a decent uptrend and moved above 1.2850 and 1.2900 against the US Dollar. The GBP/USD pair traded as high as 1.3007 where it faced sellers and currently correcting lower below the 1.2980 level.

 

GBP/USD Technical Analysis British Pound US Dollar

 

The pair is trading well with an initial support around the 23.6% Fib retracement level of the last wave from the 1.2793 low to 1.3007 high. However, the most important support is near 1.2930. There is a crucial bullish trend line with support at 1.2930 forming on the hourly chart.

 

The trend line support also coincides with the 38.2% Fib retracement level of the last wave from the 1.2793 low to 1.3007 high.

 

So, if the pair moves down, buyers are likely to emerge near 1.2930-20. Buying dips remains a good option in the near term. Only a break and close below 1.2900 or the 50% Fib retracement level of the last wave from the 1.2793 low to 1.3007 high might call for more corrections.

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