The British Pound traded in a range against the US dollar, and it looks like the GBPUSD pair is struggling to break an important resistance near 1.2510-30.
GBPUSD Weekly Analysis – Can British Pound Buyers Break This?
• The British Pound after a decline towards the 1.2400 handle recovered against the US Dollar.
• There was a crucial bullish trend line formed on the 4-hours chart of GBPUSD at 1.2390, which prevented further declines.
• In the UK today, the GfK Group Consumer Confidence was released, which posted a decline from -3 to -8 in Nov 2016.
GBPUSD Technical Analysis
The British Pound was mostly seen trading in a broad range against the US Dollar with resistance near 1.2530 and support around 1.2400. Recently, the GBPUSD pair declined towards 1.2390 where it found a crucial bullish trend line formed on the 4-hours chart, which prevented further losses in the short term.
The pair recovered, and now trading near the range resistance at 1.2510-30, which is acting as a strong barrier for an upside break. It prevented an upside move many times, and may continue to stop the British Pound buyers.
On the downside, the pair may find support near the 100 simple moving average (H4) at 1.2440. It may act as an initial support, followed by the range support near 1.2400.
Trade Idea – If you are looking to enter a buy trade, then consider it on dips near the 1.2440-20 levels with a stop of a break below the trend line support.
Today in the UK, the GfK Group Consumer Confidence, which is an important index highlighting the level of consumer confidence in economic activity was released.
The market was not expecting any change from the last reading of -3 in Nov 2016. However, the outcome was lower, as there was a decline to -8. Commenting on the report, the Head of Market Dynamics at GfK, Joe Staton, stated “The slump across the board this month points to continuing uncertainty about the state of the economy among consumers. Although scores for our personal financial situation just about remain positive, the big theme is the reduced confidence in the UK economy looking back and ahead”.
Overall, it won’t be easy for the pair to break higher, but remains supported on the downside near 1.2440-00.