The Great Britain Pound (GBP) inched higher against the US Dollar (USD) on Thursday, increasing the price of GBPUSD to more than 1.2800 following key economic 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
Currently, the pair is being traded around 1.2895, a resistance can be noted around 1.2946, a trendline resistance level is the point of reference. Another resistance may come near 1.3054, the 38.2% Fib level resistance and then comes a key horizontal resistance around 1.3148, 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 1.27388, the trendline support. Another support level may come at 1.2400, the psychological number. At 1.2106, the key horizontal 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 bearish as long as 1.3237, a major horizontal resistance level remains intact.
USD Nonfarm Payrolls
In the United States, the figure with respect to the Non-farm payrolls increased by 201K in August of 2018, as compared to 147K in during the month before and above market expectations of 191K. Employment increased in professional and business services, healthcare, wholesale trade, transportation and warehousing, and mining.
Non-Farm Payrolls in the United States averaged 126.88 Thousand from 1939 until 2018, reaching an all-time high of 1115 Thousand in September of 1983 and a record low of -834 Thousand in October of 1949. Generally speaking, an increase in the employment rate indicates a bullish market for the US Dollar (USD) and vice versa.
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.