GBP/USD Forecast — Can British Pound Continue Higher Vs US Dollar?
- - The British Pound is placed nicely above the 1.4000 support area against the US Dollar.
- - There is an important bullish trend line forming with support at 1.4010 on the 4-hours chart of the GBP/USD pair.
- - Recently in the UK, the GFK Consumer Confidence for March 2018 was released by the e GfK Group.
- - The outcome was better than the forecast as there was a rise in the index from the last reading of -10 to -7.
UK GFK Consumer Confidence
Recently in the UK, the GFK Consumer Confidence for March 2018 was released by the e GfK Group. The market was positioned for no change in the Consumer Confidence from the last reading of -10 in March 2018.
The actual result was better than the forecast as there was a rise in the index from the last reading of -10 to -7. The report added that:
GfK’s long-running Consumer Confidence Index increased three points in March 2018. All five of the constituent measures recorded higher values.
The GBP/USD pair must stay above the 1.4010 and 1.4000 support levels to remain in a bullish zone for more gains.
GBP/USD Technical Analysis
The British Pound made decent gains this week so far above the 1.4050 pivot level against the US Dollar. The GBP/USD pair was seen trading in a bullish zone, but at the same time there was a strong resistance near the 1.4230–40 zone.
The pair even traded above the 1.4150 level and it recently formed a high at 1.4170. At the moment, it is correcting lower and broke the 50% Fib retracement level of the last wave from the 1.3982 low to 1.4170 high.
On the downside, there is also a major bullish trend line forming with support at 1.4010 on the 4-hours chart of the GBP/USD pair. The same trend line is near the previous pivot zone and the 100 simple moving average (4-hours).
Therefore, it seems like the pair remains well supported around the 1.4000 level. If the pair fails to hold the 1.4000 handle, there could be major declines in the near term.
Originally published at — ForexGator.com.