Forex Trading: GBPUSD Technical Analysis – October 18, 2019
The Great Britain Pound (GBP) crawled low on Friday against the US Dollar (USD), dropping GBPUSD’s price to below 1,2900. The pair’s price dropped after the publication of major economic news. The technical bias may become bullish because, in the recent upside step, the pair of prices denoted a higher peak.
GBP/USD Technical Analysis
At present, the pair is being exchanged around 1.2859, At 23.6 percent, immediate support can be seen around 1,2798, which is likely to prevent the price from dropping lower, a while later comes the trendline support of 1,2681, and then there is significant horizontal support of 1,1956 in the graph below.
Moving to the upside, A trendline resistance that prevents the pair’s price from expanding over this level may face about 1,2905, a psychological number at that point sooner or later, at 12900, and then a significant horizontal resistance of 1,2495, as shown in the provided chart. The technical bias shall turn bullish as long as 1.2796, the major horizontal resistance level remains intact.
USD Capacity Utilization
In the United States, the figure concerning the capacity utilization remained 77.5% in October, less to 77.9% month before, down beating the economist expectation which was 77.6%. The data is sourced from the news released by the Federal Reserve Board.
The Federal Reserve Board’s Capacity Utilization is the amount of US production capacity that is currently used in the short-term. It is representative of the US economy’s overall growth and demand. Use high capacity increases inflationary pressures. A high reading is usually seen as favorable (or bullish) for the USD, and vice-versa.
Given the pair’s general price activity over the last few days, it can be a decent choice in the short to medium term to sell the GBPUSD around current levels. Therefore, adhering to the financial calendar is probably not going to succeed, you also need to discover intermediaries with an exceptional level of influence so that you can find some advantage when exchanging your pair.