Visit our website – Ikofx
The British pound after falling sharply to the new lows against the US dollar managed to gain buyers around the 1.4600 support area. The pair is now correcting higher and testing an important resistance area around the 1.4980-1.5000 levels. Let us see how sellers react around the mentioned area and whether they can manage to protect upside in the near term or not. In the UK, the CBI Industrial Trends Survey, which gives expert qualitative opinion from senior manufacturing executives, on past and expected trends in output, exports, prices, costs, investment intentions, business confidence and capacity utilization will be released by the Confederation of British Industry. The forecast is of 9 compared to last reading of 10.
There is a major bearish trend line formed on the hourly chart of the GBPUSD pair, which is acting as a barrier for the pair in the short term. The most important point is that the same trend line is sitting around a critical level i.e. the 1.50 swing level. So, we need to see whether the British pound buyers can manage to clear the mentioned resistance area or not. The 61.8% fib retracement level of the last leg from the 1.5164 high to 1.4685 low is also sitting around the same trend line. In short, a break above the 1.50 level might encourage the British pound buyers moving ahead and could take it towards the last swing high of 1.5150.
If the GBPUSD pair moves lower from the current levels, then initial support is around the 200 hour simple moving average.
Overall, one might consider buying dips in the GBPUSD pair as long as it stays above the 200 hour MA.