The British Pound faced a lot of sellers recently against the US Dollar, and it looks like the GBP/USD pair may decline further during the coming days.
GBP/USD Weekly Forecast – Pound To Dollar Set For Further Declines
· The British Pound corrected recently against the US Dollar to trade near 1.3055.
· There were a couple of bearish trend lines on the 4-hours chart of GBP/USD, which defended the upside successfully.
· The pair is now moving down, and looks set for more losses in the near term towards 1.2900.
GBP/USD Technical Analysis
The British Pound had a bad week so far versus the US Dollar, and it looks like the GBP/USD pair may continue to weaken. The recent upside move towards 1.3000 in GBP/USD was stopped near a couple of bearish trend lines on the 4-hours chart.
The 1.2910 level acted as a barrier for sellers earlier, but if the current momentum stays, there is a real chance of a new low in GBP/USD. The pair may even test 1.2800.
Trade Idea – Selling around the highlighted trend line and resistance area may be considered with a stop above as a daily close above 1.3020.
The UK did not witness anything special in terms of fundamental news. Most of them were mixed, which failed to help the British Pound in the near term. Today, the Gfk Consumer Confidence was released. It is a major index that evaluates the level of consumer confidence in economic activity in the UK.
The forecast was slated for a minor improvement from the last reading of -7 to -5 in September 2016. The result was better, as there was a rise of -1. However, we cannot deny the fact that the index is below 0.
Commenting on the rise, the Head of Market Dynamics at GfK, Joe Staton, stated “We're reporting some recovery in the Index this month as consumers settle into the new wait-and-see reality of a post-Brexit, pre-exit UK. The uptick in confidence is driven by good news from hard data, the combination of historic low interest rates matched with falling prices and high levels of employment”.
Overall, the report was positive, but the market sentiment remains bearish for the GBP/USD pair and suggesting more declines.