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The British pound performed well during this past week against the US dollar, as it traded towards the 1.5400 level. The GBPUSD pair is currently consolidating in a small range and looks like setting up for a move higher. There is a chance of a minor correction as well in the near term. There is no major risk event lined up in the UK today, which means the pair might trade according to the Forex market sentiment moving ahead. The Rightmove House Price Index was released earlier today, which was in line with the expectation with a gain of 2.1% in February 2015, compared to the preceding month.
There was a critical bearish trend line formed on the hourly chart of the GBPUSD pair, which was broken by the British pound buyers recently. This particular break has given a hope to the GBPUSD pair for a move higher in the near term. The GBPUSD pair is currently struggling to clear an important resistance around the 1.5400-20 area, which is acting as a hurdle for the pair. There is a possibility that the pair might correct lower in the near term towards the broken trend line where buyers might appear again. The 38.2% fib retracement level of the last leg from the 1.5200 low to 1.5422 high is also sitting around the same area.
On the upside, a break of the 1.5420 level is needed for a push higher in the near term. We need to see how the pair reacts moving ahead.
Overall, one might consider buying dips in the GBPUSD pair as long as it is trading above the broken trend line.