The Great Britain Pound (GBP) inched higher against the US Dollar (USD) on Wednesday, increasing the price of GBPUSD to more than 1.2800 following some major economic news releases. The technical bias may remain bearish because the pair’s price marked a higher low in the recent upside move.
GBP/USD Technical Analysis
As of this writing, the pair is being traded around 1.2805, a resistance can be noted around 1.2833, the immediate 23.6% Fib level resistance. Another resistance may come near 1.2995, the horizontal resistance and then comes a trend line resistance around 1.3127, as demonstrated in the given below chart.
Coming towards the downside, a support can be witnessed around 1.2707, the trend line support. Another support level may come at 1.2300, the psychological number. At 1.2103, the major horizontal level may act as a strong preventing the price of the pair from falling below this level, as demonstrated in the given above chart. The technical bias shall remain bearish as long as 1.2972, the major horizontal resistance level remains intact.
Initial Jobless Claims – United States
The number of Americans filing for unemployment benefits fell last week, a sign the labor market was holding firm despite tensions between the United States and it’s trading partners that have led to tit-for-tat tariffs.
Initial claims for state unemployment benefits slipped 2K to a seasonally adjusted 210K for the week ended Aug. 18, the Labor Department said on Thursday.
It was the third straight week of declines for claims, which have dropped so low that economists have scrambled for explanations. In July, claims fell to their lowest level since 1969 even though the workforce is much larger than in prior decades.
Economists polled by Reuters ahead of Thursday’s report had forecast claims rising to 215K in the latest week. Generally speaking, less number of claimants filing for unemployment allowance indicates a bullish trend for the US Dollar (USD) whereas increasing numbers of claimants imply a bearish market for the US Dollar (USD).
Trade Idea
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.