Key Points
- The British Pound likely made a short-term top near 1.2979 against the US Dollar.
- The GBPUSD pair is attempting a break below a bullish trend line with support at 1.2900 on the hourly chart.
- Today in the UK, the GfK Group Consumer Confidence for August 2017 was released.
- The outcome was above the forecast of -13, as there was a rise from the last reading of 12 to -10.
GBPUSD Technical Analysis
The British Pound traded nicely this week and moved above the 1.2900 level against the US Dollar. The GBPUSD pair traded as high as 1.2979 where it faced sellers and started a downside move to break the 21 hourly simple moving average.
The pair traded towards the 1.2880 support, which held the downside. At the moment, the pair is attempting a break below a bullish trend line with support at 1.2900 on the hourly chart.
It already failed once to break the 50% Fib retracement level of the last decline from the 1.2979 high to 1.2882 low. So, there are chances that the pair would even break the 1.2900 support for more losses.
UK’s GfK Group Consumer Confidence
Today in the UK, the GfK Group Consumer Confidence for August 2017 was released. The market was positioned for a decline in the index from the last reading of -12 to -13.
The actual result was above the forecast of -13, as there was a rise from the last reading of 12 to -10. Commenting on the report, the Head of Market Dynamics at GfK, Joe Station, stated:
Consumer confidence across the UK has fallen to the level last seen in the immediate aftermath of the Brexit vote. The economic picture across the UK remains confusing and this mood is reflected in the Overall Index Score, which is down by five points.
Overall, the GBPUSD is likely to break the 1.2900 support area for further declines in the near term.
