GBP/USD Forecast: Pound Still Strong
The Pound continues shedding ground this Friday, with the GBP/USD pair advancing up to 1.4688 following the London opening, from where it turned south to post a fresh 2-day low of 1.4620. Buyers have surge around this last, and the pair trades flat daily basis, as the market awaits for the second revision of US Q1 GDP, expected to have been upwardly revised from 0.5% to 0.9%.
Overall, the Pound remains strong, as the intraday pullback stalled
around the daily descendant trend line broken earlier this week.
Technically, the 4 hours chart shows that the price is holding above a
bullish 20 SMA, whilst the technical indicators are now recovering from
near their mid-lines, after correcting the extreme overbought readings
reached earlier this week.
The pair needs now to accelerate above 1.4710 to be able to rally to new weekly highs, up to 1.4770 in the case US data disappoints. Further gains are not yet clear, but if somehow the pair surges above this last, doors will be then open for a rally up to 1.5000 next week.
The downside is quite messy, with the 20 SMA, the broken trend line and a Fibonacci support, which means that the pair needs to fall below 1.4600, to signal further declines towards the 1.4540/60 region.