Forex Trading: GBPUSD Technical Analysis – January 30, 2020

It’s a good morning for the GBPUSD by pricing itself at more than 1.3000 on the graph below. Whereas in this trading week, we saw its continuous drop but today rise once again illuminates the bright light with the hope that it gets back the desired destination. The United Kingdom has received some of the good news over the last few days that make the GBP strengthen. Talking of the technical bias it remains bullish because of the lower high move in the last downside movement.

GBP/USD: Technical Analysis

Now, with the price of 1.3020, the GBPUSD is quoted itself, sadly, on the upper side, the price has the resistance levels that might hit it if it moves further, At 1.3066, there is the 61.8% Fib level resistance, afterward, if the price moves further it might meet the trendline resistance 1.3126, and then major horizontal resistance strikes it at 1.3168.

GBPUSD

On the other side, the price has fortunate with the two parallel support level that forces the price toward the forward direction that are 1.2990 and 1.2977 respectively, ahead of the major horizontal support of 1.2850, as shown in the graph above.

UK Markit Manufacturing PMI

The manufacturing sector rose from 47.5 to 49.2. Given that a large portion of total GDP is dominated by the manufacturing sector, PMI manufacturing is an important indicator of business conditions and the overall economic situation in the UK. A result of over 50 signals is positive for the GBP.

Trade Idea

Even though the GBPUSD price doesn’t display satisfactory results, it still has the ability to conquer all the obstacles and get the highest position. Therefore putting the money in GBPUSD might be appropriate for holders of short and long positions.

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