GBPUSD – Can British Pound Bounce Back Vs US Dollar?
- The British Pound recently traded higher after forming a support at 1.2770-80 against the US Dollar.
- The GBPUSD pair broke a major bearish trend line at 1.2855 on the hourly chart to move higher.
- Today in the UK, the Nationwide Housing Prices were released for May 2017.
- The outcome was below the forecast, as there was a decline of 0.2% (MoM), more than the forecast of -0.1%.
GBPUSD Technical Analysis
The British Pound after trading towards 1.2750-70 against the US Dollar, started trading in a range and consolidated. Later, the GBPUSD pair gained momentum, and moved above the 1.2800 resistance for a move towards 1.2900.
During the upside, the pair broke a major bearish trend line at 1.2855 on the hourly chart and the 21 simple moving average.
The pair traded as high as 1.2927, and currently correcting lower. On the downside, the 50% Fib retracement level of the last wave from the 1.2775 low to 1.2927 high may act as a strong support along with the 21 simple moving average at 1.2850-40.
UK’s Nationwide Housing Prices
Recently in the UK, the Nationwide Housing Prices were released for May 2017. The market was positioned for the Housing Prices to decrease by 0.1% in May 2017, compared with the previous month.
The result was below the forecast, as there was a decline of 0.2%, but better than the last -0.4%. In terms of the yearly change, there was a rise of 2.1% in prices, less than the forecast of 2.5%. The report highlighted that House prices show third consecutive monthly decline for the first time since 2009. Annual house price growth dips to 2.1%, providing further evidence that housing market is losing momentum”.
Overall, the GBPUSD may move down a few pips in the near term, but the 1.2850-40 support could hold losses.
– Guest Post Submitted By Aayush Jindal from the FXTimes Team