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The Great Britain Pound (GBP) inched higher against the US Dollar (USD) on Monday, increasing the price of GBPUSD to more than 1.3000 following some key economic events. The technical bias remains bullish because of a higher low in the recent upside rally.
Technical Analysis
As of this writing, the pair is being traded near 1.3006. A hurdle may be noted around 1.3043 (the high of the last major upside rally) ahead of 1.3047 (another key horizontal resistance) and then 1.3100 (the psychological number).
On the downside, 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 above chart. The technical bias shall remain bullish as long as the 1.2700 support area is intact.
UK GDP Data
Official data has confirmed that the British economy slowed in the first three months of the year, with growth of 0.2 percent on weaker spending by consumers. “Growth (from the final quarter of 2016) was driven by output from the business services and finance, and construction industries, partially offset by declines in some consumer-focused industries,” the Office for National Statistics said in a statement on Friday, confirming an earlier estimate. Gross domestic product (GDP) growth had stood at 0.7 percent in the final quarter of last year, while the first-quarter reading of 0.2 percent was the weakest for a year.
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.
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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.
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