- The British Pound made a nice upside move towards 1.2965 against the US Dollar before facing offers.
- The GBPUSD pair moved down, and broke a major bullish trend line at 1.2926 on the hourly chart.
- The US Personal Income for March 2017 (MoM) released by the Bureau of Economic Analysis, Department of Commerce posted a rise of 0.2%, less than the forecast of 0.3%.
GBPUSD Technical Analysis
The British Pound gained heavy bids from the 1.2800 support against the US Dollar. The GBPUSD pair surged higher and moved above the 1.2900 handle.
Later, it traded as high as 1.2964 where it found resistance, and started a correction. It moved down and broke a major bullish trend line at 1.2926 on the hourly chart.
The pair also cracked the 23.6% Fib retracement level of the last wave from the 1.2803 low to 1.2964 high.
GBPUSD Hourly Chart
However, the pair found support at 1.2900, and the 38.2% Fib retracement level of the last wave from the 1.2803 low to 1.2964 high.
Now, the pair is recovering, but facing a connecting bearish trend line at 1.2935. It won’t be easy for buyers to break 1.2940 for a retest of 1.2960.
I think the pair may trade in a range of 1.2910-60 before making the next move.
US Personal Income and Spending
Today in the US, the Personal Income for March 2017 was released by the Bureau of Economic Analysis, Department of Commerce. The market was expecting an increase of 0.3% in the income in March 2017, compared with the previous month.
The actual result was a bit lower than the forecast, as the Personal Income in the US increased by 0.2%. The same was the case of the Personal Spending. The market was expecting an increase of 0.2% in the spending in March 2017, compared with the previous month, but it remained unchanged at 0%.
The report mentioned that:
The increase in real PCE in March was more than accounted for by an increase in spending for services, notably spending for household utilities. This increase was partially offset by a decrease in spending for durable goods, which was more than accounted for by a decrease in motor vehicles and parts.
Overall, there is a chance of GBPUSD moving towards 1.2940, but likely to move down once again.