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GBPUSD – British Pound Testing Crucial Support Vs US Dollar

Key Points

  • The British Pound after a rise towards 1.2575 against the US Dollar found resistance, and started correcting lower.
  • The GBPUSD pair is currently trading above a major support trend line at 1.2500 on the hourly chart.
  • Recently in China, the FDI (Foreign Direct Investment) for March 2017 (YoY) was released by the Ministry of Commerce of the People’s Republic of China.
  • The outcome was better than the forecast, as the FDI increased by 1%, which was impressive compared with the last decline of 2.3%.

GBPUSD Technical Analysis

The British Pound moved higher above 1.2500 against the US Dollar to trade as high as 1.2576 where if faced offers. The GBPUSD pair moved down, and traded below the 23.6% Fib retracement level of the last wave from the 1.2365 low to 1.2576 high.

GBPUSD Technical Analysis

However, the pair is still above a major support area at 1.2480-1.2500. The stated support also coincides with the 38.2% Fib retracement level of the last wave from the 1.2365 low to 1.2576 high.

Moreover, there is also a major support trend line at 1.2500 on the hourly chart. So, as long as the pair is above 1.2480, it may trade back higher.

Chinese Foreign Direct Investment

Today in China, the FDI (Foreign Direct Investment) for March 2017 (YoY) was released by the Ministry of Commerce of the People’s Republic of China. The forecast was lined up for no major increase in the FDI in March 2017, compared with the same month a year ago.

The result was better than the forecast, as the FDI increased by 1%, which was impressive compared with the last decline of 2.3%. So, there was a decent increase in the total investment capital made by foreign enterprises, economic organizations in March 2017, compared with March 2016.

Overall, the GBPUSD looks supported on the downside near 1.2480-1.2500, and may trade higher once again.

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