Key Highlights
- The British Pound failed to move above 1.4150 this past week against the US Dollar and declined.
- There is a crucial bearish trend line forming with current resistance at 1.4080 on the 4-hours chart of GBP/USD.
- The UK CBI Industrial Trends Survey Orders Index declined from 14 to 10 in Feb 2018.
- Today, the UK Claimant Count Change figure for Jan 2018 will be released, which is forecasted to come in at 4.1K, less than the last 8.6K.
GBPUSD Technical Analysis
The British Pound made a nice upside move this past week and traded above 1.4100 against the US Dollar. However, the GBP/USD pair failed near 1.4150 and started a downside correction.
The pair declined and traded below the 23.6% Fib retracement level of the last wave from the 1.3799 low to 1.4144 high. It even traded below the 1.4000 support and closed below the 100 simple moving average (red, 4-hour).
However, the downside move found support near the 61.8% Fib retracement level of the last wave from the 1.3799 low to 1.4144 high.
On the upside, there is a crucial bearish trend line forming with current resistance at 1.4080. If the pair moves higher from the current levels, then it could face a strong selling interest near 1.4050 and 1.4080.
A successful close above 1.4080, followed by a break of 1.4100 may open the doors for more gains in the near term. On the downside, the 1.3920-1.3930 support area is important. If the pair declines below 1.3920, there could be further losses.
Today, there are many significant economic releases lined up in the UK, including the Claimant Count Change figure for Jan 2018. The market is looking for a change of 4.1K in the Claimant Count, down from the last 8.6K.
On the other hand, the UK Unemployment Rate is forecasted to remain at 4.3%. Therefore, it would be interesting to see how the British Pound trades after the actual data is out. If the Claimant Count Change figure beats the forecast, there could be an upward move towards 1.4080 in GBP/USD.
On the contrary, if the actual is below the forecast, then the pair could struggle to hold the 1.3920 support level.
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