The Great Britain Pound (GBP) inched lower against the US Dollar (USD) on Wednesday, decreasing the price of GBPUSD to less than 1.3350 following some key economic releases. The technical bias remains bearish because of the lower high in the recent downside move.
GBP/USD Technical Analysis
As of this writing, the pair is being traded around 1.3327. 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.
On the downside, a support can be noted near 1.3200, a psychological level ahead of 1.3155, the horizontal support level and then 1.3053, another major horizontal support as demonstrated in the given above chart. The technical bias shall remain bearish unless the 1.4000 resistance level remains intact.
Sterling fell to a new 2018 low last week after weaker-than-expected UK inflation cast doubt on whether the Bank of England (BoE) will raise interest rates this year.
Annual consumer price inflation cooled to 2.4 percent, its weakest increase since March 2017.
Sterling slumped 0.6 percent after the data to $1.3347, its lowest since Dec. 21 and government bond prices rallied, pushing five-year gilt yields to their lowest since May 14.
Worries about Brexit and a recent run of weak economic data means markets are now not even pricing in a full 25-basis-point hike by the end of 2018.
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.