GBPUSD – British Pound Facing Crucial Resistance Near 1.2480
- The British Pound after trading as low as 1.2380 against the US Dollar started a recovery.
- The GBPUSD pair is currently facing a major resistance near 1.2470-80 on the hourly chart.
- In the US, the total Net TIC Flows report for Dec 2016 was released by the US Department of Treasury.
- The result was mixed, as it came in at $-42.8B in Dec 2016, compared with the last $23.7B.
GBPUSD Technical Analysis
The British Pound traded higher recently from the 1.2400 swing low against the US Dollar, and traded above the 1.2420 resistance area. However, the GBPUSD pair is currently facing a major resistance near 1.2470-80 on the hourly chart.
There is a bearish trend line on the hourly chart at 1.2460 and the 21 hourly simple moving average. Moreover, the 61.8% Fib retracement level of the last decline from the 1.2545 high to 1.2380 low is also positioned above the trend line.
So, the GBPUSD pair is technically facing a crucial resistance near 1.2470. A break above it may call for a move towards the next trend line resistance at 1.2510.
US Net TIC Flows
Recently in the US, the total Net TIC (TIC stands for Treasury International Capital) Flows figure was released by the US Department of Treasury. The market was not expecting any major increase in Flows in Dec 2016.
The result was mixed, as it came in at $-42.8B in Dec 2016, compared with the last $23.7B. The report added the “sum total in December of all net foreign acquisitions of long-term securities, short-term U.S. securities, and banking flows was a monthly net TIC outflow of $42.8 billion. Of this, net foreign private outflows were $57.1 billion, and net foreign official inflows were $14.3 billion”.
Overall, the GBPUSD faces a major resistance at 1.2470-80, and it won’t be easy for the bulls to break it for further gains.
– Guest Post Submitted By Aayush Jindal from the FXTimes Team