The Great Britain Pound (GBP) extended upside movement against the US Dollar (USD) on Monday, increasing the price of GBPUSD to more than 1.5540 ahead of some key economic releases. The technical bias remains bullish due to a Higher High in the recent upside rally.
As of this writing, the pair is being traded near 1.5541. A support may be noted around 1.5529, the 38.2% fib level ahead of 1.5508, the 50% fib level and then 1.5466, the swing low of the last major dip as demonstrated in the following chart.
On the upside, the pair is expected to face a hurdle near 1.5555, the 23.6% fib level ahead of 1.5596-5600, the confluence of psychological number as well as high of the last major upside rally. The technical bias will remain bullish as long as the 1.5466 support area is intact.
US Industrial Production
The Industrial Production in the world’s largest economy remained 0.2% in May as compared to -0.3% in the month before, according to the median projection of different economists. Generally speaking, higher industrial production figure is considered positive for the US economy thus a better than expected actual outcome will be seen as bearish for the cable and vice versa.
Considering the overall technical and fundamental outlook, selling the pair around current levels appears to be a good strategy in short to medium term. The trade should however be stopped out on a hourly closing above the 1.5600 handle as described above. It is always recommended to use proper risk and reward ratio to optimize profitability in forex trading,
Trade global forex with the best ECN broker of 2021*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about making your money go further with FXOpen.
* FXOpen International, best ECN broker of 2021, according to the IAFT