Key Highlights
- The British Pound is moving higher and is currently trading above the 1.3420 support against the US Dollar.
- There is a crucial bullish trend line forming with support at 1.3430 on the 4-hours chart of GBP/USD.
- The US Factory Orders declined by 0.1% in Oct 2017, less than the forecast of -0.4%.
- Today, the UK Services PMI for Nov 2017 will be released, which is forecasted to decline from 55.6 to 55.0.
GBPUSD Technical Analysis
The British Pound is gaining bullish momentum above 1.3450 against the US Dollar. The GBP/USD pair might soon break 1.3550 for a move towards 1.3600 in the near term.
After a downside spike, the pair found support at 1.3220 and started an upside move. It traded higher and broke the 1.3400 and 1.3500 resistance levels. A high was formed at 1.3549 from where the pair corrected lower.
It tested the 38.2% Fib retracement level of the last wave from the 1.3220 low to 1.3549 high. On the downside, there is a crucial bullish trend line forming with support at 1.3430 on the 4-hours chart.
The trend line and support area near 1.3420 are important. As long as the pair stays above 1.3420, it could continue higher towards 1.3600 and it might even break it for further gains.
US Factory Orders
Recently in the US, the Factory Orders report for Oct 2017 was released by the US Census Bureau. The market was looking for a decline of around 0.4% in orders compared with the previous month.
The actual result was better as the decline in orders was only 0.1% in Oct 2017. However, the outcome was disappointing when compared with the last increase of 1.7% (revised up from +1.4%).
The GBP/USD pair was neutral after the release, but remained elevated above the 1.3420 support.
Economic Releases to Watch Today
Germany’s Services PMI for Nov 2017 – Forecast 54.9, versus 54.9 previous.
France Services PMI Nov 2017 – Forecast 60.2, versus 60.2 previous.
Spanish Services PMI for Nov 2017 – Forecast 55.2, versus 54.6 previous.
Euro Zone Services PMI for Nov 2017 – Forecast 56.2, versus 56.2 previous.
UK Services PMI for Nov 2017 – Forecast 55.0, versus 55.6 previous.
US Services PMI for Nov 2017 – Forecast 55.4, versus 54.7 previous.
