The Great Britain Pound increased against the US Dollar on Monday, with a price increase of more than 10 pips totaling the price near 1.3100. The price increases after a major economic news release. Considering the price behavior over the last couple of days and the lower high printed on the graph during the last downside move, the technical bias is expected to remain bullish.
GBP/USD: Technical Analysis
As of writing this piece, the GBPUSD is being asked around 1.3119. As the price moves upside, it may face some resistance near various levels ahead including the major horizontal resistance which may push back the price towards downside once the price hits this point near 1.3185, then comes 1.3227, the trend line resistance and then the Fibonacci level may resist the price from moving higher above than 1.3311 as shown in the graph below.
Coming towards the downside, a support level may be seen around 1.2983, it’s the 23.6% Fib level support ahead of 1.2925, the trend line support and then 1.2656, the low of October 16, 2019. All of the said support levels may provide firm support to the price helping it to sustain around the current levels as shown in the graph above.
GBP Public Sector Net Borrowing
The latest figures from The Net Borrowing, which fell from £ 8.25 B to £ 4.87 B, surpassed the economist’s forecast of £ 5.6 making the remarkable impact on GBP’s price against the USD, according to the Fundamental Perspective.
Generally speaking, if the net borrowing is negative, it means that the UK accounts are surplus, which should be positive for the GBP. While a deficit is generally unfavorable to the economy, Net Borrowing growth is considered to be negative or bearish to the GBP.
After the steady decline, in the last week of December, GBPUSD will eventually take a step for stabilization, it will soon return to its highest level, i.e. 11 December 2019. So short- and long-term traders may be looking for their fate.