GBP/USD Forecast: Bulls poised to challenge the 1.4000 mark

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3980

UK monthly GDP is foreseen at -4.9% in February, down from 1.2% in the previous month.
Industrial Production in the UK is foreseen contracting 4% YoY in January.
GBP/USD poised to extend its advance in the near term beyond 1.4000.

A weaker dollar helped GBP/USD reach 1.3986, its highest for this week, with the pair holding on to gains at the end of the American session. The pair surged on the back of sub-1.50% 10-year Treasury yields, as the latter fell to 1.475% ahead of the opening. The greenback remained under pressure despite the latter recovered to 1.52%.

The UK published the February RICS Housing Price Balance, which beat expectations by printing at 52%. This Friday, the kingdom will release January Industrial Production, foreseen at -4% YoY, and the monthly Gross Domestic Product, foreseen at -4.9% from 1.2% in January. The country will also unveil the January Trade Balance.

GBP/USD short-term technical outlook

The GBP/USD pair has room to extend its advance, as the 4-hour chart shows that it is developing above its 100 SMA for the first time in a week. The moving average remains directionless, but the 20 SMA advances below it. In the meantime, the Momentum aims to resume its advance while the RSI stabilizes near overbought readings, supporting a bullish continuation in the near-term.

Support levels: 1.3930 1.3890 1.3845

Resistance levels: 1.4000 1.4045 1.4090

View Live Chart for the GBP/USD

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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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