GBP/USD Forecast: bullish, 1.2440

Valeria Bednarik FXStreet

The Pound extended its gains up to1.2435 against the greenback this Monday, its highest since late February. The UK´s Nationwide house price index for March released overnight showed that house prices held near multi-year lows, up by 1.3% in the month from previous 2.0%, and unchanged yearly basis at 2.3%. There are no major releases in the US today, only a minor manufacturing index, with attention centering in a Trump speech, early Asian.

In the meantime, stocks trade marginally lower, the greenback is down against all of its major rivals, and the GBP/USD pair holds ground above 1.2400.

From a technical point of view, the 4 hours chart shows that the pair retains the positive tone seen late last week, but lacks upward momentum. Technical indicators in the mentioned chart are retreating modestly from overbought readings, not enough to suggest an upcoming downward move, but the 20 SMA keeps advancing below the current level, maintaining its upward slope.

The pair has stalled its advance a few pips above a major Fibonacci resistance, at 1.2425, still the main resistance as a clear break above it is required to confirm further gains towards 1.2470. Above this last, 1.2510 comes next. The immediate support is 1.2380 followed by 1.2345.

View live chart of the GBP/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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