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GBP/USD: Slow And Steady Uptrend

ByTitan FX
Published 04/20/2015, 12:35 AM
Updated 07/09/2023, 06:32 AM
GBP/USD
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Key Highlights
· British pound slowly grinding higher against the US dollar, but faces a monster resistance around 1.50.
· UK Rightmove House Price Index was released recently, which posted an increase of 1.6% in April 2015, compared to the preceding month.
· GBP/USD has formed a pivot area around 1.4920-30, which holds the key in the short term.

Technical Analysis
The British pound this past week traded briefly above the 1.50 resistance area against the US dollar, but failed to close the week above the mentioned level. There was a sharp reaction noted around 1.5040-50 which caused a pullback in GBP/USD. The pair is currently correcting lower, and facing supports in the form of a bullish trend line on the hourly chart. The highlighted trend line is also coinciding with the 50% fib retracement level of the last leg from the 1.4810 low to 1.5053 high.

GBP/USD Hourly Chart

On the upside, there is a minor bearish trend line formed, which is acting as a barrier for the GBP/USD pair. If buyers manage to break the spotted trend line, then a retest of 1.50 is very likely in the short term.

US Chicago Fed National Activity Index
Today during the NY session, the Chicago Fed National Activity Index CFNAI), which is a monthly index designed to measure overall economic activity and related inflationary pressure will be released by Federal Reserve Bank of Chicago.
The last reading stands at -0.11, so let’s see how the index shapes up for March 2015. Any major disappointment might cause swing moves in the US dollar.

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