GBP/USD Forecast — Can British Pound Retain Upside Momentum Vs US Dollar?

• - The British Pound started a downside correction after trading as high as 1.4146 against the US Dollar.
• - There was a break below an ascending channel with support at 1.4085 on the hourly chart of the GBP/USD pair.
• - Recently in the UK, the Rightmove House Price Index for Feb 2018 was released.
• - The outcome was above the forecast of 0.7%% as the index rose 0.8% (MoM) in Feb 2018.

UK Rightmove House Price

Recently in the UK, the Rightmove House Price Index for Feb 2018 was released. The market was positioned for a rise of 0.7% in the index in Feb 2018 compared with the previous month.

The actual result was above the forecast of 0.7%% as the index rose 0.8% (MoM) in Feb 2018, which was similar to the last reading. In terms of the yearly change, there was a rise of 1.5% in the index in Feb 2018, more than the last 1.1%. The report added:

Average price of property coming to market is up 0.7% (+£2,067) this month on Rightmove, tracking over 90% of the UK property market, similar to the 0.6% rise at this time a year ago with virtually identical number of properties coming to market.

The GBP/USD pair is currently holding the 1.4000 support, but it remains at a risk of a downside push in the near term.

GBP/USD Technical Analysis

The British Pound made a nice upside move this past week and traded above 1.4100 against the US Dollar. The GBP/USD pair traded as high as 1.4146 before it started a downside correction and traded below 1.4100.

The pair declined and broke the 23.6% Fib retracement level of the last wave from the 1.3799 low to 1.4146 high. Moreover, there was a break below an ascending channel with support at 1.4085 on the hourly chart.

However, the downside move was protected by the 1.4000 support. The pair is currently trading above the 1.4000 support and the 100 hourly simple moving average. Below 1.4000, the 50% Fib retracement level of the last wave from the 1.3799 low to 1.4146 high at 1.3973 is a nice support.

Overall, the price action is positive as long as the pair is above 1.3970–1.4000. A break below 1.3970 could ignite more losses in the near term.

Originally published at — ForexGator.com.