The Great Britain Pound (GBP) inched lower against the US Dollar (USD) on Tuesday, decreasing the price of GBPUSD to less than 1.3150 following some key economic releases. The technical bias remains bearish because of the lower high in the recent upside move.
GBP/USD Technical Analysis
As of this writing, the pair is being traded around 1.3143 A support can be noted near 1.3100, a psychological level ahead of 1.3055, the horizontal support level and then 1.2953, another major horizontal support as demonstrated in the given below chart.
On the upside, a resistance can be noted around 1.3643, an immediate trendline resistance level ahead of 1.4000, a major psychological number and then 1.4342, the confluence of a horizontal and trendline resistance as demonstrated in the given below chart. The technical bias shall remain bearish unless the 1.4000 resistance level is broker.
US Growth Rate
The U.S. economy slowed more than previously estimated in the first quarter amid the weakest consumer spending in nearly five years, but growth appears to have since regained momentum on the back of a robust labor market and tax cuts.
Gross domestic product increased at a 2.0 percent annual rate in the January-March period, the Commerce Department said on Thursday in its third estimate of first-quarter GDP, instead of the 2.2 percent pace it reported last month.
The economy grew at a 2.9 percent rate in the fourth quarter. The downgrade to first-quarter growth reflected weaker consumer spending and a smaller inventory build than the government had estimated last month.
Considering the overall price behavior of the pair over last couple of days, buying the GBPUSD around current levels can be a good decision in short to medium term.