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GBPUSD Poised For Further Gains

Key Points

  • British Pound was seen trading higher against the US Dollar, and it may continue to gain further.
  • There was a breakout structure formed for the GBPUSD pair earlier, which opened the doors for more upsides.
  • In the UK, the Consumer Price Index released by the National Statistics posted an increase of 0.4% in March 2016, more than the forecast.
  • In terms of the yearly change, there was a rise of 0.5% in March 2016, more than the forecast of 0.4%.

Technical Analysis

The British Pound jumped higher recently against the US Dollar, as the greenback was seen weakening against most major currencies. There was a breakout structure formed for the GBPUSD pair earlier, which was broken recently igniting a rally in the short term.

GBPUSD

The pair is now positioned well above the 200 hourly simple moving average, which may act as a support if GBPUSD moves down from the current levels.

On the upside, a break above the 1.4315 level could take the pair towards the 1.4350 resistance area.

UK CPI

Today, the UK saw a couple of important releases. The main one was the Consumer Price Index, which is a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services. The National Statistics stated that there was a rise of 0.4% in March 2016, which was more than the forecast 0.3%.

Moreover, in terms of the yearly change, there was a rise of 0.5% in March 2016, compared with the same month a year ago. Moreover, the report stated, “Rises in air fares and clothing prices were the main contributors to the increase in the rate between February and March 2016”.

It looks like the GBPUSD pair is trading with a bullish tone, and may continue to trade higher in the near term.

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