- The British Pound spiked higher during the past week and traded above 1.3000 against the US Dollar.
- There is a crucial bullish trend line with support at 1.3040 forming on the hourly chart of GBP/USD.
- Today in the UK, the Rightmove House Price Index for July 2017 was released.
- The outcome was positive, as there was a rise of 0.1% in the index (MoM), compared with the last decline of 0.4%.
GBP/USD Technical Analysis
In the last analysis, we discussed that if the British Pound breaks 1.2945-50 against the US Dollar, there can be a move towards the 1.2980-1.3000 levels.
The GBP/USD pair did clear the 1.2950 resistance area and climbed above 1.3000. The upside move was aggressive, as the pair managed to trade above 1.3100 as well.
A new monthly high was formed at 1.3112 where the pair faced offers and started a correction.
GBP/USD Hourly Chart
On the downside, an initial support is around the 23.6% Fib retracement level of the last wave from the 1.2911 low to 1.3112 high.
However, there is a crucial bullish trend line with support at 1.3040 forming on the hourly chart. It also coincides with the 38.2% Fib retracement level of the last wave from the 1.2911 low to 1.3112 high.
So, if the pair corrects lower towards 1.3065 or even 1.3040, it may find support and resume its uptrend. The 1.3000 handle is now a major support for the current bullish trend for cable.
UK’s Rightmove House Price Index
Today in the UK, the Rightmove House Price Index for July 2017 was released. The market was expecting a minor increase in the index compared with the previous month.
The actual result was positive, as there was a rise of 0.1% in the index, compared with the last decline of 0.4%. In terms of the yearly change, the Rightmove House Price Index increased by 2.8%, which was a lot more compared with the last 1.8%.
Overall, the GBP/USD pair might correct a few pips towards 1.3050-30, but remains supported for more gains in the near term.