Forex Trading: GBPUSD Technical Analysis – May 31, 2019
The Great Britain Pound (GBP) inched higher against the US Dollar (USD) on Friday increasing the price of GBPUSD to more than 1.2700. The price of the pair increased 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
At times, the pair is being traded around 1.2609, since the price is increasing, the price of the pair may encounter resistance around 1.2786 the horizontal level resistance. Another resistance level may come at 1.2899, the 38.2% Fib level resistance ahead of 1.3222, the trendline resistance 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.
Coming towards the downside, a support can be seen around 1.2514, the trendline support level ahead of 1.2400 the psychological number and then comes 1.2391, the major horizontal 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.
Considering the overall price behavior 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.