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Market Analysis

Home » Technical Analysis » Daily » GBPUSD – British Pound Under Bearish Pressure

GBPUSD – British Pound Under Bearish Pressure

Posted by FXTimes in Daily - July 27th, 2016 1:33 pm GMT

pound 11

Key Points

  • The British Pound was crushed against the US Dollar and looks set for more losses in the near term.
  • There is a bearish trend line formed on the hourly chart of the GBPUSD pair, which is acting as a resistance for the pair.
  • The UK Gross Domestic Product was released by the National Statistics earlier today.
  • The outcome was positive, as the preliminary reading came in at 0.6% in Q2 2016, compared with the forecast of 0.5%.

Technical Analysis

The British Pound traded lower against the US Dollar and tested an important support area of 1.3080, which provided bids. There is a bearish trend line formed on the hourly chart of the GBPUSD pair, which is stalling the upside move.

GBPUSD

The pair is below the 21 hourly simple moving average, which is a concern for the buyers in the short term.

On the downside, a break below the highlighted support area may call for more losses in the near term.

UK GDP

Today in the UK, the Gross Domestic Product, which is a measure of the total value of all goods and services produced by the UK was released by the National Statistics.

The forecast was lined up for a rise of 0.5% in Q2 2016, compared with the previous quarter. However, the result was positive, as there was an increase of 0.6%. The report stated that “Output increased in 2 of the main industrial groupings within the economy in Quarter 2 2016. Services increased by 0.5% and production increased by 2.1%. In contrast, construction decreased by 0.4% and agriculture decreased by 1.0%. GDP was 2.2% higher in Quarter 2 2016 compared with the same quarter a year ago.”

The GBP bulls were not impressed after the release, as the GBPUSD pair was seen struggling during the London session.

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