GBPUSD – British Pound Can Continue Trading Higher?

GBPUSD – British Pound Can Continue Trading Higher?

Key Highlights            

  • British Pound failed around the 1.4450 level against the US Dollar and started to move down once again.
  • There are many support levels on the way down for the GBPUSD pair, which can act as a hurdle for the sellers.
  • In the UK, the GfK Group Consumer Confidence was released, which came in at 0 in March 2016, unchanged from the last reading.
  • Today, the UK Gross Domestic Product will be released by the National Statistics, which is forecasted to increase by 0.5% in Q4 2015.

GBPUSD Technical Analysis

The British Pound after trading higher towards the 1.4450 level found resistance and then started to move down against the US Dollar. The GBPUSD pair is likely heading towards a major support area, which is near 1.4300-1.4250.

GBPUSD

There is a support trend line formed on the hourly chart, which is also sitting near the 100 and 200 simple moving average.

If the GBPUSD pair continues to move down, then the bulls may take a stand near the highlighted support area on the hourly chart.

GfK Group Consumer Confidence

Earlier in the UK, the GfK Group Consumer Confidence, which is a leading index that measures the level of consumer confidence in economic activity was released. The market was expecting a decline in the confidence index to -1 in March 2016. However, the outcome was positive, as there was no change in the GfK Group Consumer Confidence index in March 2016.

Commenting on the report, Head of Market Dynamics at GfK, Joe Staton, stated “Are we seeing Brexit jitters at work now? Whilst UK consumers remain resolutely upbeat about their personal financial situation, even showing a +1 point increase this month when asked about expectations for the year ahead, concerns about prospects for the general economic situation continue to dampen our mood”.

UK GDP

Today, in the UK, the Gross Domestic Product, which is a measure of the total value of all goods and services produced by the UK will be released by the National Statistics. The forecast is slated for a rise of 0.5% in the GDP in Q4 2015, compared with Q3 2015.

The next move in the GBPUSD pair may depend on the UK GDP report. If the result fails to lift the market sentiment, then there is a chance of more losses in the British Pound value moving ahead.



Aayush Jindal

Aayush is a Senior Forex, Cryptocurrencies and Financial Market Strategist with a background in IT and financial markets. He specialises in market strategies and technical analysis, and has spent over a decade as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets.

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