Forex Trading: GBPUSD Technical Analysis – Febuary 04, 2020
Although GBPUSD passed from yesterday’s awful decline, Great Britain Pound (GBP) today rose against the U.S. Dollar (USD), but this rise is not surpassed yesterday’s bad downturn, yet luckily, it signals the step toward the positive movement and thus marked its place more than 1.3000. The rise in price is mirrored by the UK’s positive news. Considering the technical bias, because of the higher high move printed in the graph on the last upside move, so it remains bullish.
GBP/USD: Technical Analysis
Today, the GBPUSD is quoted at a price of 1.3009. Regrettably, on the upper side, the price has the resistance levels that could hit it if it moves further, at 1.3026 there is a trendline resistance, afterward if the price moves a little further it could meet another trendline resistance at 1.3122, and then key horizontal resistance strikes it at 1.3201.
On the other hand, the price has an opportunity with the support levels that push the price towards the forward direction, at first there is the major horizontal support of 1.2852, ahead of the level of Fibonacci at 1.2698, as shown in the above graph.
UK Manufacturing Purchasing Managers Index (PMI)
Yesterday’s Manufacturing Purchasing Managers Index (PMI) was lied at the 50, although it was slightly higher than the last index of 49.8. But the outcome above 50 is bullish for GBP, whereas the outcome below 50 is considered bearish. Since the manufacturing sector constitutes a significant part of the total GDP, Manufacturing PMI is an important indicator of the business conditions and the economic condition overall.
Right now, for more than two weeks, the GBPUSD is just around the same level, only the short-term traders can make themselves beneficial through this recent movement.