Forex Trading: GBPUSD Technical Analysis – August 08, 2019

The Great Britain Pound (GBP) inched lower against the US Dollar (USD) on Thursday decreasing the price of GBPUSD to less than 1.3000. The price of the pair decreased after major economic news released. The technical bias may remain bearish because the pair’s price marked a higher low in the recent upside move.

GBP/USD Technical Analysis

As of this writing, the currency pair is being traded around 1.2134, since the price is decreasing, the price of the pair may encounter a support around 1.2125, the confluence of a trendline and horizontal support level ahead of 1.2098 the 61.8% Fib level and then comes 1.2089, the major horizontal support which is likely to prevent the price from falling further as demonstrated in the given below chart.

GBPUSD 08 August 2019

 

Coming towards the upside, resistance around 1.2338 the horizontal level resistance. Another resistance level may come at 1.2501, the psychological number ahead of 1.2765, the high of March 13, 2019, which is likely to act as a strong resistance preventing the price of the pair from increasing above this level as demonstrated in the given above chart. The technical bias shall remain bearish as long as 1.2125, the major horizontal resistance level remains intact.

United States ‘ ISMI Prices Paid News

In the United States, the figure concerning the price index of ISMI remained 54.3 in March, as compared to 49.4 during the month before, up beating the economist expectation which was 50.1 The data is taken from the news released by the US Institute for Supply Management.

The data represents the prevailing condition of the manufacturing market of the United States. The figure is derived after considering various elements of the market such as new orders placed, the estimated production rate for the future, employment rate, available inventories, and deliveries made so far. The ISMI figure is usually considered as sensitive to the US economy and may instigate inflation in the future.

Generally speaking, high reading in this regard is considered as a bullish trend for the US Dollar (USD) and vice versa.

Trade Idea

Considering the overall price behavior of the pair over the last couple of days, buying the GBPUSD around current levels can be a good decision in short to medium term.

 


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