Forex Trading: GBPUSD Technical Analysis – December 24, 2019
Eventually, after the continuous fall for more than a week, GBP is pushing itself up against the USD and labeling a bullish candle on the graph with the price of more than 1,2900, due to the release of major economic updates, the price increase is taking place. As far as the technical bias is concerned, it still remains bearish due to the higher low wave printed on the graph.
GBP/USD: Technical Analysis
The GBPUSD is now being offered at a price of 1,2964, with the levels of resistance ahead, which may limit its upward movement. The first resistance that the pair’s price may experience is 1.3140, 23.6 percent fib level and soon there is a trendline resistance of 1.3178, then at 1.3504, a major horizontal resistance stands, as shown in the graph below.
Looking at the downside, the price can receive immediate horizontal support of 1.2911, then at 1.2699, there is trend line support and soon after it is supported by 61.8 percent fib level support of 1.2594, as shown in the above graph. All these levels of support will shield the price from falling and in the course of growth would definitely help it.
GBP Public Sector Net Borrowing
Essentially, The Net Borrowing’s latest news fell from £ 8.25 B to £ 4.87 B, and also beat the economist’s forecast of £ 5.6, that puts its significant impact on price increases. Reduced net borrowing means surplus United Kingdom assets, which should be good for GBP. Consequently, it pointed to the possibility in the near future of improving the GBP currency.
Since the GBPUSD’s past behavior clearly shows that the price is consistently falling like a stone, there is a risk to short-term traders, whereas long-term traders should be looking for their luck.