The Great Britain Pound (GBP) inched lower against the US Dollar (USD) on Wednesday, decreasing the price of GBPUSD to less than 1.3400 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 1.3373. 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.
Fed Manufacturing Index
The Richmond Fed manufacturing index for December came in at 20 verses 21 estimate. The prior month was higher at 30. Last month was the highest reading on record (going back to 1998). For this month, services index for December came in at 25 verses 30 last month. Manufacturing shipments fell to 24 from 33. New orders 16 verses 35 last month. Backlog orders -4 versus 21 last month. Capacity utilization 16 verses 19 last month. Number of employees 20 verses 18 last month. Wages 22 verses 21 last month. Average work week 8 verses 17 last month. prices paid 1.79% versus 2.04% last month. Prices received 1.27% versus 1.63% last month
Trade Idea
Considering the overall technical and fundamental outlook, selling the pair around current levels may be a good strategy in short to medium term.
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