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Sep 27, 2016

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Market Analysis

Home » Technical Analysis » Daily » GBPUSD Looks Set For More Gains

GBPUSD Looks Set For More Gains

Posted by FXTimes in Daily - February 10th, 2016 12:35 pm GMT

pound-sterling-forecast-GBP[1]

Key Points

  • British Pound recently traded higher against the US Dollar, and looks poised for more upsides.
  • There was a bearish trend line break noted on the hourly chart of the GBPUSD pair, calling for buyers to take the pair higher.
  • In the UK, the Industrial Production released by the National Statistics posted a decline of 1.1% in December 2015, which was higher compared to the forecast of -0.1%.
  • In terms of the yearly change, the UK Industrial Production declined by 0.4%.

Technical Analysis

The GBPUSD pair after trading as low as 1.4355 found support and started to move higher. There was a bearish trend line formed on the hourly chart, which was broken by buyers to open to way for more gains in the near term.

GBPUSD

The pair settled above the 200 and 50 simple moving average (H1), and looks set for a break above the 100 SMA.

If buyers succeed in breaking the 200 hourly SMA along with the 50% Fib retracement level of the last drop from the 1.4671 high to 1.4355 low, then a move towards 1.4550 is possible.

UK Industrial Production

Today, the UK Industrial Production, which measures outputs of the UK factories and mines was released by the National Statistics. The market was expecting a decline of 0.1% in December 2015, compared with Nov 2015. However, the result was disappointing, as the production fell by 1.1%.

In terms of the yearly change, the UK Industrial Production declined by 0.4%, which was poor as the forecast was lined up for a rise of 1% in Dec 2015, compared with Dec 2014.

Overall, the report was not positive for the GBPUSD pair, but the market sentiment remains in favor of more gains in the near term.

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