The Great Britain Pound (GBP) inched lower against the US Dollar (USD) on Friday, decreasing the price of GBPUSD to less than 1.3100 following some key economic releases. The technical bias remains bullish because of the higher low in the recent downside move.
GBP/USD Technical Analysis
As of this writing, the pair is being traded around 1.3079. A support can be noted near 1.2800, a psychological level ahead of 1.2755, the horizontal support level and then 1.2633, another major horizontal support as demonstrated in the given below chart.
On the upside, 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. The technical bias shall remain bearish unless the 1.4000 resistance level is broker.
The UK economy picked up speed in the three months to July, boosted by warm weather and the World Cup.
The Office for National Statistics reported on Monday that GDP expanded by 0.3 per cent in July, better than the 0.2 per cent expected by City of London analysts and up from the 0.1 per cent growth rate in June.
Over the three months the growth rate picked up from 0.4 per cent to 0.6 per cent, the highest since the summer of 2017.
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.