The Great Britain Pound (GBP) rose against the US Dollar (USD) on Thursday increasing the price of GBPUSD to more than 1.3100 following some major economic releases. The technical bias may remain bullish because the pair’s price marked a higher high in the recent upside move.
GBP/USD Technical Analysis
Currently, the pair is being traded around 1.3131, a resistance can be seen around 1.3383, the major horizontal resistance is the point of reference. Another resistance may come near 1.3615, the 61.8% Fib level resistance and then comes 1.4376, the high of April 17, 2018, which is likely to prevent the price from falling further as demonstrated in the given below chart.
Coming towards the upside, a support can be seen around 1.2859, the major horizontal support. Another support level may come at 1.2597, the trend line support ahead of 1.2391, the low of January 03, 2019, which is likely to act as strong support level preventing the price of the pair from decreasing below this level, as demonstrated in the given above chart. The technical bias shall remain bullish as long as 1.2859, 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).
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.