The Great Britain Pound (GBP) inched higher the US Dollar (USD) on Friday increasing the price of GBPUSD to more than 1.2800. The price of the pair increased after major economic news released. The technical bias may turn bearish because the pair’s price marked a lower low in the recent downside move.
GBP/USD Technical Analysis
Currently, the pair is being traded around 1.2798, since the price is increasing it may encounter resistance around 1.2878, the trend line resistance. Another resistance level may come at 1.3022, the 23.6% Fib level resistance 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 1.2705, the 61.8% Fib level support ahead of 1.2500, the psychological number 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 ADP Employment Change News
The employment change rate in the US remained 163K in August, as compared to 217K during the month before, up beating the economist expectation which was only 190K, the data is taken from the news released by Automatic Data Processing Inc.
The organization measures the number of people remained employed over a due course of time. Generally speaking, a positive reading in the employment data rate is considered as bullish for the US Dollar (USD) and vice versa.
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.