FXOpen
The Great Britain Pound (GBP) inched lower against the US Dollar (USD) on Wednesday, decreasing the price of GBPUSD to less than 1.3450 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 1.3422. A hurdle may be noted around 1.3655 (a major horizontal resistance zone) ahead of 1.3900(a psychological level) and then 1.3943 (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.
UK Markit Services PMI
Britain’s economy is ending 2017 lagging the euro zone’s strong recovery as the effects of last year’s Brexit vote weigh on shoppers and on businesses, according to a range of data released on Tuesday.
The monthly IHS Markit/CIPS services Purchasing Managers’ Index (PMI), covering businesses from hotels to hairdressers, fell to 53.8 in November from to 55.6 in October, at the low end of most forecasts from economists polled by Reuters.
Trade Idea
Considering the overall technical and fundamental outlook, buying the pair around current levels may be a good strategy in short to medium term.
Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Latest from Forex Analysis
Latest articles
UK100 Share Index Rises as UK Inflation Slows
Yesterday, the UK Office for National Statistics (ONS) reported that the CPI stood at 3.2% in March. According to ForexFactory, analysts expected 3.1%, and a month ago the index was 3.4%.
Grant Fitzner, chief economist at the
The Dollar is Corrected after the Comments of the Head of the Federal Reserve
Good data on the labour market in the United States and the continuous rise in inflation for several months are helping to reduce experts’ expectations about a change in the vector of monetary policy in the United States. Recent comments
Is There the Best Time to Trade Stock CFDs?
If you ask experienced traders, many will say that they trade on certain days or at certain times of the day. Their choice is determined by the market dynamics, volatility, and liquidity. It’s crucial to understand when the best