GBPUSD Extends Losing Streak As US Services Sector Expands

FXOpen

The Great Britain Pound (GBP) extended downside movement against the US Dollar (USD) on Wednesday, dragging the price of GBPUSD to less than 1.4150 following the release of some key economic news. The technical bias remains bearish because of a Lower High in the recent upside rally.

Technical Analysis

As of this writing, the pair is being traded near 1.4144. A support may be noted near 1.4114, a major horizontal support as demonstrated in the following daily chart. A break and daily closing below the 1.4114 support area could incite renewed selling pressure, validating a move below the 1.4052 support area.

GBPUSD Extends Losing Streak As US Services Sector Expands

On the upside, the pair is likely to face a hurdle near 1.4321, the high of the recent short-term rally on the four-hour timeframe ahead of 1.4459, the swing high of the last major upside rally. The technical bias will remain bearish as long as the 1.4459 resistance area is intact.

US Services Sector Expands

The U.S. economy’s service sector expanded in March, a signal that business conditions are moving at a positive pace, according to an industry report released on Tuesday. The Institute for Supply Management (ISM) said its index of non-manufacturing activity rose to 54.5 from 53.4 the month before. The reading was just above expectations of 54.0 from a Reuters poll of 74 economists. A reading above 50 indicates expansion in the service sector and a reading below 50 indicates contraction.

Trade Idea

Considering the overall technical and fundamental analysis, buying the pair near the above mentioned support levels appears to be a good strategy in short to medium term if we get a valid bullish reversal candle on the daily chart.

 

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

EUR/USD, GBP/USD, USD/JPY Analysis: Dollar Stable Despite Weak Employment Data Will rate hikes end when 2023 ends? USD/JPY, USD/CAD, and EUR/USD Analysis: The US Dollar Corrected in Anticipation of PMI Data Release EUR/USD, GBP/USD, USD/JPY Analysis: US Dollar Weakens after Fed Chairman's Comments EUR/USD, GBP/USD, and USD/JPY Analysis: US Dollar Growing Against Euro and Pound

Latest articles

Forex Analysis

EUR/USD, GBP/USD, USD/JPY Analysis: Dollar Stable Despite Weak Employment Data

Yesterday, statistics from the United States on the dynamics of open vacancies from JOLTS were published. In October, their number decreased by 617.0k to 8.733 million, which turned out to be the lowest result since the beginning of

Forex Analysis

Will rate hikes end when 2023 ends?

Finally, after a seemingly endless period of interest rate increases by the US Federal Reserve over the past few years, there is some degree of inkling that the rate rises may come to an end at the end of this

Commodities

Market Analysis: WTI Oil Price Drops to Lowest Level Since July

As the chart shows, the price of a barrel of US crude oil dropped below 72.10 per barrel yesterday for the first time since July 2023. Fundamentally, this happened against the backdrop of: → Statistics showing that US oil exports

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.