The Great Britain Pound (GBP) inched higher against the US Dollar (USD) on Monday, increasing the price of GBPUSD to more than 1.4200 following some key economic releases. The technical bias remains bullish because of the lower high in the recent downside move.
GBP/USD Technical Analysis
As of this writing, the pair is being traded around 1.4201 A resistance can be noted around 1.4212, An immediate horizontal resistance level ahead of 1.4221, a trendline resistance and then 1.4342, the confluence of a horizontal and trendline resistance as demonstrated in the given below chart.
On the downside, a support can be noted near 1.4027, a horizontal resistance level support ahead of 1.3995, the trendline resistance and then 1.3953, a major horizontal support as demonstrated in the given above chart. The technical bias shall remain bullish unless the 1.3953 support level remains intact.
UK’s PMI Construction News
In UK, the rate of PMI construction remained 47.0 in March, as compared to 51.4 during the month before, down beating the economist expectation which was 50.8, the data is taken from the news released by the Chartered Institute of Purchasing & Supply and Market Economics. The PMI construction figure represents the prevailing condition in the UK’s construction market. It is to be noted that the construction figure doesn’t have greater impact on the UK’s economy as compared to the UK’s manufacturing sector. A reading above 50 is taken as bullish for the Great Britain Pound (GBP) whereas a reading below 50 is considered bearish for the Great Britain Pound (GBP).
Considering the overall price behavior of the pair over last couple of days, buying the GBPUSD around current levels can be a good decision in short to medium term.