The Great Britain Pound (GBP) extended upside movement against the US Dollar (USD) throughout the course of previous week, increasing the price of GBPUSD to more than 1.4200 amid some key economic releases. The technical bias however remains bearish because of a Lower Low in the recent downside move.
Technical Analysis
As of this writing, the pair is being traded near 1.4197. A support may be noted around 1.4079, the horizontal support ahead of 1.4000, the psychological level and then 1.3835, the swing low of the last major downside move.
On the upside, the pair is expected to face a hurdle near 1.4667, the swing high of the last major upside rally ahead of 1.5000 in the long run which is a key psychological number. The technical bias will remain bearish as long as the 1.4667 resistance area is intact.
US Job Data
Amid fears that the U.S. could be joining a global slowdown, the economy added a better-than-expected 242,000 jobs in February while the unemployment rate held steady at 4.9 percent. Economists were expecting 190,000 new positions and no change in the jobless figure.
Despite the strong headline number, the closely watched average hourly wages actually declined for the month, falling 3 cents and equating to a 2.2 percent annualized jump, down from 2.5 percent in January. Fed policymakers are looking at wages for evidence of inflation. The average hourly work week also declined 0.2 hours to 34.4.
Trade Idea
Considering the overall technical and fundamental outlook, selling the pair near current levels could be a good strategy if we get a valid bearish reversal candle on four-hour timeframe.
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