The Great Britain Pound (GBP) inched lower against the US Dollar (USD) this morning, decreasing the price to less than 1.2900, the price decreases amid recent unfavorable economic news release. Talking about the technical bias, it might remain bullish because of the higher high marked during the last upside move.
GBP/USD: Technical Analysis
Sliding towards the downside, the Great Britain pound is being exchanged around 1.2896 as of now. The price is likely to come across a resistance around 1.2980, the confluence of two trend lines which may prove to be a strong resistance level forcing the price to stay below the said level. Another resistance may also come around 1.3063, the trend line resistance and then 1.3377, the major horizontal resistance may push the price backward as shown in the graph below.
Moving towards the downside, support may be seen around 1.2837, the Fib level ahead of 1.2669, the major horizontal level which may provide some strong support preventing the price from decreasing further. Another strong support level is there around 1.2501, its a confluence of a key horizontal level and a trend line support which may help the price to stay above the said level.
GDP Public Sector Net Borrowing
The situation for Great Britain Pound (GBP) is getting worse after the figures published in the National Statistics of the United Kingdom show an amount of new debt that is increased from £ 7,256 b to £ 10,509 B which is unfavorable to the economy, net borrowing growth is considered negative or GBP bearish.
Considering the pair’s price behavior over the past few days, it may not work well to open a short-term position for GBPUSD. However, if you trade through our recommended broker platform, you may be able to crack a competitive spread advantage.