GBP/USD Forecast — Can British Pound Break This Vs US Dollar?
- - The British Pound jumped higher sharply from the 1.2784 swing low against the US Dollar.
- - There is a crucial bearish trend line in place with resistance at 1.2965 on the hourly chart of the GBP/USD pair.
- - Recently in the US, the Trade Balance report for July 2018 was released by the Bureau of Economic Analysis and the U.S. Census Bureau.
- - The outcome was around the market forecast as there was a trade deficit of $-50.1B.
US S Trade Balance
Recently in the US, the Trade Balance report for July 2018 was released by the Bureau of Economic Analysis and the U.S. Census Bureau. The market was positioned for a trade deficit of around $-50.1B, more than the last deficit.
The actual result was around the market forecast as there was a trade deficit of $-50.1B, which was more than the last revised trade deficit of $-45.7B. The report added that:
The July increase in the goods and services deficit reflected an increase in the goods deficit of $4.2 billion to $73.1 billion and a decrease in the services surplus of $0.1 billion to $23.1 billion.
The GBP/USD pair recently climbed higher above the 1.2900 level, but it seems like the pair is facing a tough resistance near the 1.2960–70 zone.
GBP/USD Technical Analysis
The British Pound was under a lot of pressure below the 1.2900 earlier this week against the US Dollar. The GBP/USD pair traded below the 1.2800 level, but later buyers appeared near the 1.2785 level and pushed the pair higher.
The pair jumped higher sharply and broke the 1.2900 resistance and the 100 hourly simple moving average. It even broke the 1.2950 resistance, but it faced a strong resistance near a crucial bearish trend line with current resistance at 1.2965 on the hourly chart.
The pair declined and traded below the 1.2900 support level. However, the 50% Fib retracement level of the last wave from the 1.2784 low to 1.2983 high acted as a support. GBP/USD is once again rising and it could soon retest the same bearish trend line.
However, to gain traction, the pair has to move above the trend line resistance and the 1.2980 level. If it fails once again, it could retest or even break the 1.2900 support level in the near term.
Originally published at ForexGator.com.