The Great Britain Pound (GBP) inched higher against the US Dollar (USD) on Tuesday, increasing the price of GBPUSD to more than 1.2000. The price of the pair increased 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
Currently, the currency pair is being traded around 1.2082, the trendline support can be seen around 1.2012, the major horizontal support ahead of 1.1900 the psychological number and then comes 1.1885, the trendline support level which is likely to prevent the price from falling further as demonstrated in the given chart.
Moving to the upside, the price of the pair may encounter resistance around 1.2287, the key horizontal resistance. Another resistance level may come at 1.2410, the trendline resistance ahead of 1.2456, the 38.2% Fib level 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 1.2287, the major horizontal resistance level remains intact.
USD Average Hourly Earning News
In the United States, the figure concerning the labor’s earning on an average rate per hour remained 3.2% in March, as compared to 3.4% during the month before, down beating the economist expectation which was 3.4%. The data is sourced from the news released by the Department of Labor, United States.
The data takes into account after the number of people employed in the labor category over the given period of time. It is to be noted that the figure is derived on a sampling basis. It should not be deemed as an exact figure but it can be considered as an average. It indicates the cost of inflation rated as well as the strength of the labor market. Generally speaking, high reading in this regard is considered as a bullish trend for the US Dollar (USD) and vice-versa.
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. Therefore, sticking to economic calender only might not work, you also need to find brokers offering exceptional leverage level so you may find some margin while trading your pair around. However, take note that high leverage can also lead you to severe losses if there no negative balance protection is in place.
Trading Forex does have its risks but with proper risk management and a consistent strategy that uses a form of analysis, be it technical, fundamental or sentimental, you can be hugely profitable. It is worth noting that trading, of course, has its pros and cons, we’ve highlighted those to make sure you’re aware of the key mistakes beginners often make.