The Great Britain Pound (GBP) rose against the US Dollar (USD) on Thursday increasing the price of GBPUSD to more than 1.3000 following some major economic releases. The technical bias may turn 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 1.2950, a resistance may be seen around 1.3039, the 23.6% Fib level resistance. Another resistance level may come at 1.3100, the psychological number ahead of 1.3214, the major horizontal resistance level which is likely to act as a strong resistance preventing the price of the pair from increasing above this level, as demonstrated in the given below chart.
Coming towards the downside, support can be seen around 1.2758, the 61.8% Fib level support is the point of reference. Another support may come near 1.2523, the trend line support level and then comes the major horizontal support around 1.2474 which is likely to prevent the price from falling further as demonstrated in the given above chart. The technical bias shall remain bullish as long as 1.2845, the major horizontal support level remains intact.
Great Britain PMI Construction News
In Great Britain, the figure concerning the rate of price market index for construction remained at 53.4 in November, as compared to 53.2.9 in the month before, up beating the expectation of economist which was 52.5. The data is sourced from news released by the Chartered Institute of Purchasing and Supply and Marker Economics, United Kingdom.
The figure represents the prevailing condition of the construction sector of Great Britain. It is to be noted that the construction sectors doesn’t influence the country’s GDP both in a positive or negative way as much as the manufacturing sector does. Generally speaking, a reading above than 50 is taken as a bullish trend for the Great Britain Pound (GBP) and vice versa.
Trade Idea
Considering the overall price behavior of the pair over the last couple of days, buying the GBPUSD around current levels can be a good decision in short to medium term.