FXOpen
The Great Britain Pound (GBP) inched higher against the US Dollar (USD) on Friday, increasing the price of GBPUSD to more than 1.2700 following some key economic events. The technical bias has however turned bearish because of a lower low in the recent upside rally.
Technical Analysis
As of this writing, the pair is being traded near 1.2702. 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 below chart.
On the upside, a hurdle may be noted around 1.2997 (a short-term horizontal resistance area) ahead of 1.3047 (the high of the recent upside wave) and then 1.3100 (the psychological number). The technical bias shall remain bullish as long as the 1.2700 support area is intact.
US Initial Jobless Claims
The number of people who filed for unemployment assistance in the U.S. last week rose more-than-expected, official data showed on Thursday.
In a report, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits last week rose to a seasonally adjusted 241K, from 238K in the preceding week whose figure was revised up from 237K.
Analysts had expected initial jobless claims to rise to 240K last week.
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 global forex with the Innovative Broker of 2022*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about trading forex with FXOpen.
* FXOpen International, Innovative Broker of 2022, according to the IAFT
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
Market Analysis: Gold and Commodity Currencies Resume Their Decline
Despite the fall in the US CB Consumer Confidence Index for September and the decline in new home sales for August yesterday, one could observe a strengthening of the dollar in major currency pairs. It is worth noting that in
AMZN Stock Analysis: 4 Reasons to Doubt the Bullish Outlook
After the Fed signaled last week that rates may be higher for longer than expected, the US stock market has received a strong bearish boost. And among the most vulnerable assets were technology stocks (considered risky). The NASDAQ index has
Inflation Still Dogs the Economy: What Are the Central Banks Doing About It?
High inflation continues to grip European economies, putting central banks in a tight spot as they grapple with the triple dilemma of slowing growth, persistent inflation, and the impact of unprecedented rate hikes. In September, we witnessed a shift in