- Summary:
- Despite positive reports from the UK earlier today, the BTC to GBP exchange rate seems poised for a rally to the 6,100.00 handle.
Despite positive reports from the UK earlier today, the BTC to GBP exchange rate seems poised for a rally to the 6,100.00 handle. As of this writing, the cryptocurrency is up by over 1.60% against the pound, trading around 5,253.47.
Today’s roster of economic data was generally positive. While the final reading of the Q4 2019 GDP came in as expected at 0.00%, the other reports topped expectations. The current account for the same period printed a smaller-than-expected deficit at 5.6 billion GBP compared to the 7 billion GBP forecast. Meanwhile, the revised business investment report showed that the value of capital investments in the UK only fell by 0.5% in the last quarter of 2019. It was initially reported at -1.0%.
The GfK consumer confidence report for March also beat estimates. It printed at -9, better than the -14 consensus.
While the pound initially found bids following the positive reports, the currency quickly gave up ground against the US dollar. Will we see the same price action on the BTC to GBP exchange rate?
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BTC to GBP Outlook
On the 1-hour chart, it can be seen that the BTC to GBP exchange rate has been trading in a consolidation as of late. It has made lower highs and higher lows following a strong rally. Consequently, a bullish pennant chart pattern has formed. This is considered as a bullish continuation pattern, and so, a close above yesterday’s high at 5,341.00 could mean that the cryptocurrency may soon rally.
The daily chart suggests that near-term resistance could be around the 6,100.00 psychological handle. By connecting the highs of February 13, February 19, February 24, and March 6, it can be seen that there is trend line resistance around this price.
However, be wary of a close below today’s low at 5,192.14. This would invalidate the bullish flag pattern and could mean that there are still sellers in the market. Should this happen, the next support for BTC to GBP could mean that it could fall to its March 28 low at 4,864.00.