The Great Britain Pound (GBP) inched higher against the US Dollar (USD) on Tuesday, increasing the price of GBPUSD to more than 1.3100 following key economic releases. The technical bias may remain bullish because the pair’s price marked a lower high in the recent downside move.

GBP/USD Technical Analysis

Currently, the pair is being traded around 1.3222, a resistance can be noted around 1.3251, an immediate trend line resistance level is the point of reference. Another resistance may come near 1.3400, the psychological number and then comes a  key horizontal resistance around 1.3571, which is likely to resist the price from increasing further as demonstrated in the given below chart.

On the downside, a support can be witnessed around 1.3008, the 38.2% Fib level support. Another support level may come at 1.2876, the key horizontal support level. At 1.2804, the trendline support is likely to come across which may prevent the price of the pair from falling below this level as demonstrated in the given above chart. The technical bias shall remain bullish as long as 1.3008, a major horizontal support level remains intact.

US Jobless Claims

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.

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.