British Pound Cable

GBP/USD Analysis – British Pound Eyes Break above 1.2800 Vs US Dollar

  • The British Pound after trading a few pips below 1.2700 against the US Dollar recovered well.
  • There is a bearish trend line with resistance at 1.2780 on the hourly chart of GBP/USD, which is currently preventing an upside break above 1.2800.
  • Recently in the US, the total Net TIC Flows for April 2017 was released by the US Department of Treasury.
  • The result was positive, the total Net TIC Flows were $65.8B in April 2017, more than the last $-0.7B.

GBP/USD Technical Analysis

The British Pound recently surged above the 1.2800 handle against the US Dollar, but found sellers near 1.2816 and moved down.

The pair started a correction and traded below the 1.2730 support area. A low was formed at 1.2689 where the pair found buyers and a bullish trend line on the hourly chart.

It started an upside move, and broke the 1.2730 resistance and the 50% Fib retracement level of the last decline from the 1.2816 high to 1.2689 low.

At the moment, the pair is attempting a break above a bearish trend line with resistance at 1.2780 on the hourly chart.

GBP/USD Hourly Chart

GBP/USD Technical Analysis

Once the pair succeeds in breaking 1.2775 and the 76.4% Fib retracement level of the last decline from the 1.2816 high to 1.2689 low, there are chances of more gains.

Above 1.2785, the pair could retest the last swing high at 1.2816. Any further gains might call for a run towards the 1.2850 level.

US Total Net TIC Flows

Recently in the US, the total Net TIC Flows for April 2017 was released by the US Department of Treasury. The market was expecting the total Net TIC Flows to register a good increase in April 2017.

The actual was positive, the total Net TIC Flows were $65.8B in April 2017. It was a lot better reading than the last $-0.7B. However, the Net Long-Term TIC Flows were expected to be $37.3B in April 2017, but the actual result was a lot lower, as the Net Long-Term TIC Flows were $1.8B.

Overall, the GBP/USD pair may climb above the trend line to overtake the 1.2800 hurdle for more upsides in the near term.

About Aayush Jindal 109 Articles
With over 10 years of experience and still counting, Aayush posses great technical and fundamental analysis skills in the Forex, Cryptocurrency and Financial Markets. His Analysis are well-know and famous for engaging with viewers easily. He is from IT background with a lot of passion in the Forex and Cryptocurrency Arena.


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