Forex Trading: GBPUSD Technical Analysis – December 18, 2019
Great Britain’s pound (GBP) fell continuously throughout the three days against the United States Dollar (USD) and this fall brings the price below 1,3900, the decline in the price of the pairs follows the major economic announcement. The technical bias remains bullish due to the lower high price print on the given graph
GBP/USD: Technical Analysis
GBPUSD is currently quoted at a price of approximately 1,3803. The number of support levels as shown in the graph may prevent the price from dropping further. The first level of immediate support touches the price around 1.2908, the level of 38.2% Fib, the next level is the trendline support of 1.2605, then the main horizontal support stands at 1.2545.
On the upside, there are a few levels of resistance that can’t force the price of the pair to rise above that said level. The first resistance appears at a price of 1.3128, a combination of significant horizontal and trend line resistance, ahead of 1.3213, a level of Fibonacci of 38.2 percent, then another trend line resistance comes at 1.3321.
Great Britain’s ILO Unemployment Rate Release
From the fundamental perspective, The unemployment rate put forward by the National Statistics shows the number of unemployed workers as a proportion of a total civilian workforce whether employed or unemployed. It’s a key indicator of the progress of the country’s economy. If an increased figure is recorded, it symbols a lack of expansion within the labor market in the U.K. Correspondingly, leading to weakening the U.K. economy. Generally speaking, a decreasing number is considered as positive (or bullish) for the GBP and vice versa.
While GBPUSD is facing a decline in these days, if we analyze the overall performance of pair, the market tends to remain bullish for a long time and soon the upcoming news might raise GBP, so trading around the current level can be a decent choice for both short and long-term traders.