Forex Trading: GBPUSD Technical Analysis – May 13, 2019

The Great Britain Pound (GBP) rose against the US Dollar (USD) on Monday increasing the price of GBPUSD to more than 1.3000. The price of the pair decreased after major economic news released. The technical bias may turn bullish because the pair’s price marked a lower high in the recent downside move.

GBP/USD Technical Analysis

As of this writing, the pair is being traded around 1.3012, since the price is increasing, the price of the pair may encounter resistance around 1.3147 the horizontal level resistance. Another resistance level may come at 1.3194, trendline resistance ahead of 1.3381, 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 below chart.

GBPUSD

Coming towards the downside,  a support can be seen around 1.2935, the trendline support level ahead of 1.2885 the major horizontal level and then comes 1.2767, the 61.8% Fib level support which is likely to prevent the price from falling further as demonstrated in the given above chart. The technical bias shall remain bearish as long as 1.3147, 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.

With little data due out this week from the US, the main focus for all USD pairs will be on the US-China trade war, which has developed over the past week and is creating volatility within the market. Meaning there are more opportunities but spreads are likely to increase across lots of currency pairs, no matter where your broker is based; US, UK, Australia and Middle East brokers will all be on high alert.

Trade Idea

Considering the overall price behaviour 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. Entries may differ between traders depending on their preference of trading strategy, be it scalping, news based or just sit and hold.

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