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The Great Britain Pound (GBP) inched higher against the US Dollar (USD) on Wednesday, increasing the price of GBPUSD to more than 1.3000 following some key economic events. The technical bias remains bullish because of a higher low in the recent upside rally.
GBP/USD Technical Analysis
As of this writing, the pair is being traded near 1.3033. A hurdle may be noted around 1.3158 (the high of the last major upside rally) ahead of 1.3247 (another key horizontal resistance) and then 1.3300 (the psychological number).
On the downside, a support can be noted around 1.2700 (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 Services PMI
The Markit UK PMI services index declined to 53.2 for August from 53.8 the previous month. The reading was slightly below the expected figure of 53.5 and the lowest print since September 2016. There was a slowdown in orders growth as fragile confidence and continuing uncertainty led to delays in spending decisions. Overall business expectations strengthened to a 3-month high, although sentiment was still relatively subdued. There were further concerns surrounding both economic and political uncertainties.
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.
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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.
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