Forex Trading: GBPUSD Technical Analysis – October 10, 2019
The Great Britain Pound (GBP) crawled high against the US Dollar (USD) on Thursday, increasing the price of GBPUSD to more than 1.2200. The price of the pair increased after major economic news released. The technical bias may remain bearish because the pair of price denoted a higher low in the recent upside move.
GBP/USD Technical Analysis
At present, the pair is being exchanged around 1.2235, A strong resistance keeping the price of the pair from expanding over this level may experience around 1.2325, at that point sooner or later, a trendline resistance comes at 1.2493, and at 61.8% Fib level resistance of 1.2552 stands, as showed in the given graph.
Moving to the downside, At 23.6%, immediate support can be seen around 1.2186, which is probably to prevent the price from falling further, a while later the psychological number support at 1.2000 comes, and then significant horizontal support of 1.1956 stands in the given above chart. The technical bias shall remain bearish as long as 1.2396, the major horizontal resistance level remains intact.
USD Consumer Price Index
In the United States, the figure concerning the consumer price index remained 1.7% on 10 October, same to 3.4% month before, down beating the economist expectation which was 1.8%. The data is sourced from the news released by the US Bureau of Labor Statistics.
The Consumer Price Index is a proportion of value developments by the correlation between the retail costs of a delegate shopping bin of merchandise and ventures. The buy intensity of USD is hauled somewhere near swelling. The CPI is a key marker to quantify expansion and changes in obtaining patterns. As a rule, a high perusing is viewed as positive (or bullish) for the USD, and vice versa.
Considering the general price behavior of the pair throughout the most recent few days, purchasing the GBPUSD around current levels can be a decent choice in the short to medium term. Therefore, adhering to financial calendar just probably won’t work, you additionally need to discover intermediaries offering extraordinary influence level so you may discover some edge while exchanging your pair around. In any case, observe that high influence can likewise lead you to serious misfortunes if there no negative parity insurance is set up.