- British Pound succeeded in trading higher against the US Dollar, and currently there are chances of more upsides.
- There was a resistance trend line formed on the hourly chart of the GBPUSD pair, which was broken during the upside move.
- UK CBI Industrial Trends Survey was released by the Confederation of British Industry earlier today.
- It posted a minor increase from the last reading of -14 to -11 in April 2016.
The British Pound spiked higher vs the US Dollar and traded above the 1.4500 resistance area. During the upside move, the GBPUSD pair broke a resistance trend line formed on the hourly chart and traded as high as 1.4517.
The pair is currently correcting lower, and heading towards the broken trend line and resistance area where it may find buyers. The 50% Fib retracement level of the last leg from the 1.4401 low to 1.4517 high might also act as a support area.
On the upside, a break above the 1.4520 is needed for a move towards the 1.4550 level.
UK CBI Industrial Trends Survey
Earlier today in the UK, the CBI Industrial Trends Survey, which gives expert qualitative opinion from senior manufacturing executives was released by the Confederation of British Industry. The forecast was slated for a decline from -14 to -15 in April 2016. However, the result was above the forecast, as the CBI Industrial Trends Survey rose to -11.
The report highlighted that “The survey of 472 manufacturers reported that total new orders edged down in the three months to April, matching the decline in the previous quarter. This was driven by a dip in export orders, whilst domestic orders were broadly flat”.
Overall, the market sentiment is favoring the GBP buyer, and that is the reason why more gains are possible.