The Great Britain Pound (GBP) today plummeted to less than 1.3000 against the US Dollar. However, if we spoke about the recent price movement then from the beginning of the week it suffered from this deteriorating status, and its fourth day with that wretched status that brought weakness in the UK currency day after day. UK’s unfavorable notifications are meant to be the explanation for that. Nonetheless, the technical bias might remain bullish, as the graph below depicts the lower high wave in the last downside move.
GBP/USD: Technical Analysis
Currently, the GBPUSD priced on 1.2916. This is very helpful for the GBPUSD that it could get the support at different intervals from its downside, that might be the helper for the pair’s price in order to lift the price up, at 1.252, it is supported by the major horizontal support level, afterward, at 1.2758, there is another trendline, then shortly after it, there is the Fibonacci level support at 1.2658.
But on the opposite side, the price has the threat of moving backward or losing its forward momentum due to its resistance levels which exist in the direction of its forward movement, at 1.2992, will face the first trendline resistance, soon there is the level of Fibonacci at 1.3008, and then the main resistance is at 1.3199.
UK Producer Prices Index Core Production
National Statistics published the Producer Prices Index Core Production excludes volatile products such as food and energy. The Core PPI is generally a better measure of inflation because it excludes those items whose short-term price fluctuations can skew inflationary results, which decreased by the 2 points this month and thus updated the index to 0.7 percent as compared to the last month.
In its recent price momentum, however, the GBPUSD decreases, but it still has a tendency to lift itself early, so the investors might prefer this for the purpose of trade.