GBP/USD Forecast — Can British Pound Hold This Vs US Dollar?

• - The British Pound is under pressure and it recently broke the 1.4000 support against the US Dollar.
• - There are two bearish trend lines forming with resistance near 1.3880–1.3900 on the hourly chart of the GBP/USD pair.
• - Recently in the UK, the RICS Housing Price Balance figure for Jan 2018 was released by the Royal Institution of Chartered Surveyors.
• - The outcome was above the forecast of 5% as the RICS Housing Price increased by 8% in Jan 2018.

UK RICS Housing Price Balance

Recently in the UK, the RICS Housing Price Balance figure for Jan 2018 was released by the Royal Institution of Chartered Surveyors. The market was positioned for a rise of 5% in the index in Jan 2018 compared with the last reading of 8%.

The actual result was above the forecast of 5% as the RICS Housing Price increased by 8% in Jan 2018. This was similar to the last reading of 8%. The report added:

In January, new buyer enquiries, instructions and sales all continued to drift lower, while the three month expectations for agreed sales points to a flat picture in the coming months.

The GBP/USD pair is currently under pressure and it must stay above the 1.3850 support to avoid further declines.

GBP/USD Technical Analysis

The British Pound started a downside move from the 1.4280 swing high against the US Dollar. The GBP/USD pair declined slowly and steadily to move below the 1.4200 and 1.4100 support levels. More importantly, it traded below the 1.4000 support and the 100 hourly simple moving average.

The pair traded as low as 1.3850 and is currently consolidating losses. It is currently trading near the 23.6% Fib retracement level of the last decline from the 1.3993 high to 1.3850 low.

However, on the upside, there are two bearish trend lines forming with resistance near 1.3880–1.3900 on the hourly chart of the GBP/USD pair. The pair struggle to break the 1.3900 resistance and the 50% Fib retracement level of the last decline from the 1.3993 high to 1.3850 low.

On the downside, the 1.3850 support holds a lot of importance, and the pair must stay above 1.3850 to avoid further declines. On the upside, a break and close above 1.3900 could decrease the bearish pressure.

Originally published at — ForexGator.com.