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GBP/USD Remains In Uptrend Above 1.3000

Aayush Jindal

Aayush Jindal

Key Highlights

  • The British Pound remains well supported abovethe key 1.3000 support against the US Dollar.
  • A major bullish trend line is in place withsupport at 1.3040 on the daily chart of GBP/USD.
  • The NY Empire State Manufacturing Index in April2019 increased from 3.7 to 10.1.
  • The UK Claimant Count in Feb 2019 could change20K, less than the last 27K.

GBPUSD Technical Analysis

The British Pound formed a strong support base near 1.2980 against the US Dollar. The GBP/USD pair is likely to climb higher above the 1.3150 and 1.3200 resistance as long as it is above 1.3000 and 1.2980.

GBPUSD Technical Analysis British Pound US Dollar

 

Looking at the daily chart, the pair declined this pastweek, but the all-important 1.2980 area acted as a strong support along withthe 200-day simple moving average (green).

The chart clearly suggests the significance of the 1.2980support, below which bears are likely to take control in the medium term. Thereis also a major bullish trend line is in place with support at 1.3040 on the samechart.

At the moment, the pair is trading with a positive angle andit could surpass the 1.3150 resistance in the near term. The next resistance isnear the 1.3180 level and the 50% Fib retracement level of the last slide fromthe 1.3381 high to 1.2977 low.

If there is an upside break above 1.3180 and 1.3200, thepair could continue to rise towards the 1.3300 resistance area. On thedownside, the main support is at 1.2980, below which there is a risk of a sharpdrop towards the 1.2840 support.

Fundamentally, the NY Empire State Manufacturing Index forApril 2019 was released by the Federal Reserve Bank of New York. The market waslooking for an increase from 3.7 to 6.0.

The actual result was better than the forecast, as the NYEmpire State Manufacturing Index climbed sharply to 10.1. There was a slightincrease in new orders, and shipments continued to rise modestly. Deliverytimes and inventories both grew in April 2019.

Overall, GBP/USD remains in an uptrend as long as it isabove 1.2980 and it could rise towards 1.3200 or even 1.3300 in the comingdays.

Economic Releases to Watch Today

  • German ZEW Business Economic Sentiment Index forApril 2019 – Forecast 0.8, versus -3.6 previous.
  • UK Claimant Count Change Feb 2019 – Forecast 20.0K,versus 27.0K previous.
  • UK ILO Unemployment Rate Feb 2019 (3M) –Forecast 3.9%, versus 3.9% previous.
  • US Industrial Production March 2019 (MoM) –Forecast 0.2%, versus 0% previous.