The Great Britain Pound (GBP) slid down the US Dollar (USD) on Monday, decreasing the price of GBPUSD to less than 1.2600 following some major economic releases. The technical bias may remain bearish because the pair’s price marked a lower low in the recent downside move.
GBP/USD Technical Analysis
As of this writing, the pair is being traded around 1.2598, a support can be seen around 1.2489, an immediate trend line support is the point of reference. Another support may come near 1.2000, the psychological number then comes a key horizontal support level around 1.1911, as demonstrated in the given below chart.
Coming towards the upside, a resistance can be noted around 1.3037, the immediate trend line resistance. Another resistance level may come at 1.3399, the 38.2% Fib level resistance ahead of 1.3864, the major horizontal resistance level 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.
United States Nonfarm Payrolls
Non-farm payrolls in the United States increased by 201 thousand in August of 2018, as compared to 147 thousand in during the month before and above market expectations of 191 thousand. Employment increased in professional and business services, healthcare, wholesale trade, transportation and warehousing, and mining.
Non-Farm Payrolls in the United States averaged 126.88 Thousand from 1939 until 2018, reaching an all-time high of 1115 Thousand in September of 1983 and a record low of -834 Thousand in October of 1949. Generally speaking, increasing payrolls numbers indicates a bullish trend for the US Dollar (USD) whereas a decrease in payroll 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.