GBPUSD – Pound Remains Under Pressure against US Dollar17 November, 2015 by Aayush Jindal in GBPUSD, Technical Analysis
GBPUSD – Pound Remains Under Pressure against US Dollar
- The British Pound managed to trade higher against the US Dollar, but it is facing a major resistance around 1.5240-60.
- There are a couple of bearish trend lines formed on the hourly chart of the GBPUSD pair, acting as a hurdle.
- In the UK today, the Consumer Price Index will be released by the National Statistics, which may impact a lot the British Pound and might cause swing moves in GBPUSD.
- In Australia, the minutes of the Reserve Bank of Australia meetings were published, which failed to impact the Aussie Dollar to a great extent.
GBPUSD Technical Analysis
There was a nice upside move noted in the GBPUSD pair recently, but the pair found resistance around 1.5240-60. There was a solid reaction noted around 1.5265 where sellers defended the upside and pushed the pair lower. There is now a bearish trend line formed on the hourly chart, which is acting as a hurdle and preventing gains.
Moreover, there was a support trend line on the hourly chart, which was breached by sellers to ignite selling pressure. The pair is currently attempting to settle below the 100 hourly simple moving average, and if sellers succeed, then there might be an increase in the bearish pressure.
The hourly RSI has moved below the 50 level, which is a sign that buyers are struggling to hold gains and losing momentum.
Today, there is a critical economic release in the UK, as the CPI, which is a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services will be published by the National Statistics. The market is expecting an increase of 0.1% in October 2015, compared with the preceding month. If the outcome fails to match the forecast, then there might be a downside reaction in the GBPUSD pair.
Similarly, there are other data to be released, like the Producer Price Index Input, Retail Price Index and Core Consumer Price Index. So, there is a lot of action coming up during the London session, and if you are planning to trade the British Pound you need to keep an eye on these events.