The Great Britain Pound (GBP) inched higher against the US Dollar (USD) on Monday increasing the price of GBPUSD making the total appear more than 1.2900. The price of the pair increased after major economic news released. Considering the price movement of the pair over the last few days, it is anticipated that the technical bias may turn bearish because the pair’s price marked a higher low in the recent upside move.
GBP/USD Technical Analysis
Currently, the pair is being traded around 1.2930, since the price is increasing it may encounter resistance around 1.3022, the trend line resistance. Another resistance level may come at 1.3100, the psychological number ahead of 1.3215, 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, a support can be seen around 1.2804, the major horizontal support is the point of reference. Another support may come near 1.2705, the 61.8% Fib level support and then comes 1.2391, the low of January 03, 2019 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 1.2901, the major horizontal support level remains intact.
USD ISMI Prices Paid News
In the United States, the figure concerning the price index of ISMI remained 60.7 in November, as compared to 60.3 during the month before, down beating the economist expectation which was 59.2. The data is taken from the news released by the US Institute for Supply Management.
The data represents 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 ISMI figure is usually considered as sensitive to the US economy and may instigate inflation in the future.
Generally speaking, high reading in this regard is considered as a bullish trend for the US Dollar (USD) whereas a low reading suggests a bearish market for the US Dollar (USD).
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.