The Great Britain Pound (GBP) inched higher against the US Dollar (USD) on Wednesday, increasing the price of GBPUSD to more than 1.2500 following some major economic releases. The technical bias may remain bearish because the pair’s price marked a higher low in the recent upside move.
GBP/USD Technical Analysis
As of this writing, the pair is being traded around 1.2601, a resistance can be witnessed around 1.2661, the major horizontal resistance. Another resistance level may come at 1.2775, the confluence of a trend line and 38.2% Fib level resistance ahead of 1.2868, the key horizontal resistance level as demonstrated in the given below chart.
On the downside, a support can be seen around 1.2355, an immediate horizontal support ahead of 1.2100, the psychological number then comes a key horizontal support level around 1.911, as demonstrated in the given above chart. The technical bias shall remain bearish as long as 1.3399, the major horizontal resistance level remains intact.
USD ISMI Prices Paid News
In the US, the figure concerning the price index of ISMI remained 72.1 in August, as compared to 73.2 during the month before, up beating the economist expectation which was 70.2. The data is copied from the news released by the US Institute for Supply Management.
It shows the prevailing condition of the manufacturing market of the country. The figure is derived after taking into account various elements of the market such as new orders placed, the estimated rate of production for the future, employment rate, available inventories, and deliveries made so far.
The ISM figure is considered as a sensitive indicator of the US economy. It is also taken as an indicator of the sentiment of business concerning the inflation that may occur in a due course of time. Generally speaking, a high reading in this regard is taken as a bullish trend for the US Dollar (USD) whereas a low reading suggests a bearish market for the US Dollar (USD).
Trade Idea
Considering the overall price behavior of the pair over the last couple of days, selling the GBPUSD around current levels can be a good decision in short to medium term.