GBP/USD Forecast — British Pound To Extend Gains Vs US Dollar?
- - The British Pound is trading with a positive bias above the 1.3850 level against the US Dollar.
- - There is a crucial bullish trend line forming with support at 1.3880 on the hourly chart of the GBP/USD pair.
- - Recently in the UK, the RICS Housing Price Balance survey index for Feb 2018 was released by the Royal Institution of Chartered Surveyors.
- - The outcome was below the forecast of 7% as there was no change in the RICS Housing Price in Feb 2018.
UK RICS Housing Price Balance
Recently in the UK, the RICS Housing Price Balance survey index for Feb 2018 was released by the Royal Institution of Chartered Surveyors. The market was positioned for a rise of 7% in the index in Feb 2018 compared with the previous month.
The actual result was below the forecast of 7% as there was no change in the RICS Housing Price in Feb 2018. The last reading was also revised down from 8% to 7%. The report added:
New buyer enquiries fall for the eleventh consecutive month. Average stocks on estate agents’ books hits fresh record low. Results continue to signal significant regional variation across the country.
The GBP/USD pair remained in the bullish zone and it seems like the pair may continue to move higher towards the 1.3950 level.
GBP/USD Technical Analysis
The British Pound started a fresh upside wave from the 1.3720 swing low against the US Dollar. The GBP/USD pair traded higher and broke a few important resistances such as 1.3800 and 1.3850 to settle above the 100 hourly simple moving average.
The pair recently traded as high as 1.3929 before correcting lower. It corrected and tested the 1.3850 support level. It found buyers near a crucial bullish trend line with current support at 1.3880 on the hourly chart of the GBP/USD pair.
The pair is now back trading higher and it is already trading above the 50% Fib retracement level of the last decline from the 1.3929 high to 1.3847 low. It seems like the pair may extend gains and it could retest the 1.3929 high.
Moreover, it could even break the 1.3929 level to challenge the next resistance near 1.3950. On the downside, supports are at 1.3875 and 1.3850.
Originally published at — ForexGator.com.