Key Highlights
- British pound started this week on a bearish sentiment vs the US dollar, and may continue to move down.
- There is a bearish trend line formed on the hourly chart of the GBP/USD pair, which prevented gains on more than a couple of occasions.
- Today in the UK, the CBI Distributive Trades Survey will be released by the Confederation of British Industry, which is forecasted to rise from -13 to 5 in May 2016.
- In the US, the number of New Home Sales will be released by the US Census Bureau, which is forecasted to increase by 2% in April 2016.
GBP/USD Technical Analysis
The British pound after trading as high as 1.4660 started to move down, and closed below the 1.4500 support area. There is a bearish trend line formed on the hourly chart of the GBP/USD pair, which acted as a hurdle for the bulls and stopped the pair to move higher.
The pair is below the 100 simple moving average, but above the 200 hourly SMA. So, we can say the pair is trading between an important support and crucial resistance.
If the British pound bulls manage to break the 100 hourly SMA along with the trend line and resistance, then there is a chance of more gains in the near term.