- The British Pound traded towards 1.3160 against the US Dollar before finding a short-term resistance.
- There is a crucial bullish trend line with support at 1.3050 forming on the hourly chart of GBP/USD.
- Today in the UK, the GfK Group Consumer Confidence for July 2017 was released.
- The outcome was below the forecast, as there was a decline in the Consumer Confidence from -10 to -12.
GBP/USD Technical Analysis
In the last analysis, we discussed that if the British Pound remains above the 1.3000 handle against the US Dollar, there are chances of more gains.
The GBP/USD pair did remain above the 1.3000 handle and jumped above 1.3100 to trade close the 1.3160 level before finding a short-term resistance.
Later, the pair corrected lower and moved towards the same support area of 1.3040-1.3050.
GBP/USD Hourly Chart
The 1.3050 support is holding well and the pair has already recovered above the 23.6% Fib retracement level of the last decline from the 1.3158 high to 1.3050 low.
On the downside, there is a crucial bullish trend line with support at 1.3050 forming on the hourly chart. It may continue to act as a barrier for sellers below 1.3050.
On the upside, the next barrier is near the 50% Fib retracement level of the last decline from the 1.3158 high to 1.3050 low at 1.3104.
Buying dips in the short term as long as the pair is above 1.3050 can be considered for a move back above the 1.3100 level.
GfK Group Consumer Confidence
Today in the UK, the GfK Group Consumer Confidence for July 2017 was released. The market was expecting a minor decline in the Consumer Confidence from -10 to -11.
The actual result was below the forecast, as there was a decline in the Consumer Confidence from -10 to -12. As per the report, there were declines in four of the five measures in July 2017.
Commenting on the same, the Head of Market Dynamics at GfK, Joe Staton, stated:
Consumer confidence across the UK has fallen to the level last seen in the immediate aftermath of the Brexit vote. The economic picture across the UK remains confusing and this mood is reflected in the Overall Index Score, which is down by five points.
Overall, the GBP/USD pair might attempt to move higher once again as long as it is above the 1.3050 support area.