The Great Britain Pound (GBP) inched lower against the US Dollar (USD) on Wednesday, decreasing the price of GBPUSD to less than 1.3500 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 1.3477. A resistance can be noted around 1.4212, An immediate horizontal resistance level ahead of 1.4221, a trendline resistance 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 1.3527, a horizontal resistance level support ahead of 1.3495, the trendline resistance and then 1.3453, a major horizontal support as demonstrated in the given above chart. The technical bias shall remain bullish unless the 1.3453 support level remains intact.
Germany’s Growth Rate
German growth halved in the first quarter of the year due to weaker exports and less state spending as disputes with the United States over trade and Iran’s nuclear deal clouded the outlook for Europe’s biggest economy.
The weaker-than-expected gross domestic product (GDP) data, released by the Federal Statistics Office on Tuesday, showed the German economy grew by 0.3 percent in the first three months, the slowest rate since the third quarter of 2016.
The first estimate was below the 0.4 percent predicted in a Reuters forecast of analysts and followed an expansion rate of 0.6 percent in the final three months of last year.
While the soft data caused European stocks to slip, it still marked the 15th consecutive quarter of expansion, the longest period of uninterrupted growth since German reunification.
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.