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Currency
by FXOpen on April 17, 2019

GBP/USD outlook: the pair declined recently to move into a bearish zone

Yesterday, the British Pound fell after the release of the UK labour market data. The data were at the level of forecasts, but this was not enough to keep the rate against the US Dollar. Today, the GBP/USD pair was trading slightly higher during the Asian session, as the British Pound is consolidating due to the absence of negative Brexit reports.

There is little news due to the Easter break in the UK Parliament. Nevertheless, talks about slow progress in inter-party negotiations on voting for the EU customs union pact have kept the Pound trade within the range over the past few days. The monthly consumer price index (CPI) in the UK was slightly worse than expected.

GBP/USD technical analysis

The British Pound declined recently below the 1.3075 support to move into a bearish zone against the US Dollar. The GBP/USD pair even broke the 1.3050 support and traded close to the 1.3030 level.

GBPUSD-Chart

There was a close below the 1.3070 level and the 50 hourly simple moving average. A swing low was formed at 1.3031 and the pair recently corrected above the 23.6% Fib retracement level of the last decline from the 1.3118 high to 1.3031 low.

On the upside, there are many hurdles near the previous support at 1.3075. It also represents the 50% Fib retracement level of the last decline from the 1.3118 high to 1.3031 low.

Therefore, if the pair corrects higher towards the 1.3075 level and the 50 hourly simple moving average, it is likely to face strong resistance. On the downside, the main supports are 1.3040 and 1.3020.

By FXOpen

FXOpen is a Forex and Cryptocurrency broker founded in 2005 by a group of traders. With over 10 years of experience, the company has established itself as a major Forex broker that continues to expand rapidly across the globe. FXOpen offers the MT4 and MT5 Forex trading platform with a wide range of trading instruments including 100+ FX, CFDs, Indices and Cryptocurrency markets. FXOpen also provides its own PAMM technology allowing clients to benefit from the strategies of professional traders with a proven track record of successful trading. The FXOpen Group also includes the ASIC regulated FXOpen AU in Perth Australia and the London-based FXOpen UK that is regulated by the FCA.

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