Home Daily Analysis GBPUSD Technical Analysis: March 07, 2019

GBPUSD Technical Analysis: March 07, 2019

GBPUSD

The Great Britain Pound (GBP) inched higher against the US Dollar (USD) on Thursday increasing the price of GBPUSD to more than 1.3100. The price of the pair decreased after major economic news released. The technical bias may remain bullish because the pair’s price marked a higher high in the recent upside move.

GBP/USD Technical Analysis

As of this writing, the pair is being traded around 1.3177, since the price is decreasing, a support can be seen around 1.3007, the major horizontal support ahead of 1.2841, the trend line support and then comes 1.2679, the  23.6% Fib level support which is likely to prevent the price from falling further as demonstrated in the given below chart.

GBPUSD

Coming towards the upside, the price of the pair may encounter resistance around 1.3341, the trend line resistance. Another resistance level may come at 1.3500, the psychological number ahead of 1.3621, the major horizontal resistance level which is likely to act as a strong resistance preventing the price of the pair from increasing above this level as demonstrated in the given above chart. The technical bias shall remain bullish as long as 1.3007, the major horizontal support level remains intact.

United States ISMI Prices Paid News

In the United States, the figure concerning the price index of ISMI remained 60.7 in November, as compared to 60.3 during the month before, down beating the economist expectation which was 59.2. The data is taken from the news released by the US Institute for Supply Management.

The data represents the prevailing condition of the manufacturing market of the country. The figure is derived after taking into account various elements of the market such as new orders placed, the estimated rate of production for the future, employment rate, available inventories, and deliveries made so far. The ISMI figure is usually considered as sensitive to the US economy and may instigate inflation in the future.

Generally speaking, high reading in this regard is considered as a bullish trend for the US Dollar (USD) whereas a low reading suggests a bearish market for the US Dollar (USD).

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.

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