GBP/USD Remains In Significant Uptrend29 January, 2019 by Aayush Jindal in Market Analysis
- The British Pound climbed higher recently and settled above the 1.3000 pivot against the US Dollar.
- There is a major bullish trend line in place with support at 1.3070 on the 4-hours chart of GBP/USD.
- The Chicago Fed National Activity Index (CFNAI) increased from 0.21 to 0.27 in Dec 2018.
- Today in the US, the Consumer Confidence for Jan 2019 will be released, which could decline from 128.1 to 124.0.
GBPUSD Technical Analysis
This past week, the British Pound started a solid upward move and broke the key 1.3000 barrier against the US Dollar. The GBP/USD pair surpassed the 1.3080 and 1.3120 resistance levels to move into a bullish zone.
Looking at the 4-hours chart, the pair even traded above the 1.3200 level and settled well above the 100 simple moving average (red, 4-hours). A new yearly high was formed at 1.3217 and the pair later started a downside correction.
It declined below the 1.3150 level, but there are many supports near the 1.3080 level and the 38.2% Fib retracement level of the recent wave from the 1.2831 low to 1.3217 high.
Moreover, there is a major bullish trend line in place with support at 1.3070 on the same chart. If there is a break below the trend line, the pair may test the 1.3020 support and the 50% Fib retracement level of the recent wave from the 1.2831 low to 1.3217 high.
On the upside, an initial hurdle is near the 1.3200 area, above which there are chances of more gains towards the 1.3320 level. On the flip side, a daily close below the 1.3000 handle may push the pair back in a bearish zone.
Overall, GBP/USD remains well supported on dips near the 1.3080 level. There could be range moves in the short term, but later the pair could continue to move towards 1.3320.
Economic Releases to Watch Today
- S&P/Case-Shiller Home Price Indices for Nov 2018 (YoY) – Forecast +5%, versus +5% previous.
- US Consumer Confidence Jan 2019 – Forecast 124.0, versus 128.1 previous.