The Great Britain Pound (GBP) inched higher against the US Dollar (USD) on Tuesday, increasing the price of GBPUSD to more than 1.3850 following some key economic events. The technical bias remains bullish because of a higher low in the recent downside move.
GBP/USD Technical Analysis
As of this writing, the pair is being traded near 1.3890. A hurdle may be noted around 1.4262 (a major horizontal resistance zone) ahead of 1.4300 (a psychological level) and then 1.4343 (another major resistance area).
On the downside, a support can be noted around 1.3000 (a psychological number) ahead of 1.2634 (the low of the last major downside move) and then 1.2500 (the confluence of horizontal support as well as psychological number) as demonstrated in the given above chart. The technical bias shall remain bullish as long as the 1.2700 support area is intact.
US Growth Rate
U.S. economic growth slowed slightly more than initially thought in the fourth quarter as the strongest pace of consumer spending in three years drew in imports and depleted inventories.
Gross domestic product expanded at a 2.5 percent annual rate in the final three months of 2017, instead of the previously reported 2.6 percent pace, the Commerce Department said in its second GDP estimate on Wednesday. That was a deceleration from the third quarter’s brisk 3.2 percent pace.
The downward revision to the fourth-quarter GDP growth estimate largely reflected a smaller inventory build than previously reported. It was in line with economists’ expectations.
Considering the overall technical and fundamental outlook, selling the pair around current levels may be a good strategy in short to medium term.