GBP/USD Forecast — British Pound Bullish above 1.3400 Vs US Dollar
- - The British Pound is gaining pace and is currently trading nicely above 1.3400 against the US Dollar.
- - There is a crucial bullish trend line formed with support at 1.3375 on the hourly chart of the GBP/USD pair.
- - Recently in the US, the Trade Balance report for April 2018 was by the Bureau of Economic Analysis and the U.S. Census Bureau.
- - The outcome was above the forecast of $-49.0B, as there was a trade deficit of $-46.2B.
US Trade Balance
Recently in the US, the Trade Balance report for April 2018 was by the Bureau of Economic Analysis and the U.S. Census Bureau. The market was positioned for a trade deficit of $-49.0B in April, similar to the last reading.
The actual result was better than the forecast o of $-49.0B, as there was a trade deficit of $-46.2B. Moreover, the last reading was revised down to $-47.2B.
The GBP/USD pair is currently consolidating gains with a minor corrective formation, but it remains in an uptrend above the 1.3400 level.
GBP/USD Technical Analysis
After a major decline, the British Pound found support around the 1.3250 level against the US Dollar. The GBP/USD pair started an upside move and traded above the 1.3300 and 1.3350 resistance levels to settle nicely above the 100 hourly simple moving average.
The pair even broke the 1.3400 resistance and settled above the same. It traded as high as 1.3449 and is currently consolidating gains. On the downside, an initial support is around the 38.2% fib retracement level of the last wave from the 1.3332 low to 1.3442 high.
More importantly, the previous resistance near the 1.3400 level is likely to act as a strong support in the near term. There is also a crucial bullish trend line formed with support at 1.3375 on the hourly chart of the GBP/USD pair.
Overall, the pair remains well supported near 1.3400, the trend line, and the 50% fib retracement level of the last wave from the 1.3332 low to 1.3442 high. On the upside, a break above the 1.3450 level may open the doors for more gains towards 1.3500 in the near term.
Originally published at ForexGator.com.