The Great Britain Pound (GBP) inched lower against the US Dollar (USD) on Friday, decreasing the price of GBPUSD to less than 1.30000 following some key economic data from the United States. The technical bias has turned bullish because of a higher high in the recent upside rally.
Technical Analysis
As of this writing, the pair is being traded near 1.2954. A support can be noted around 1.2844 (an immediate trendline support) ahead of 1.2795 (the 23.6% fib level) and then 1.2700 (the confluence of horizontal support as well as psychological number) as demonstrated in the given below chart.
On the upside, a hurdle may be noted around 1.2979 (a short term horizontal resistance area) ahead of 1.3047 (the high of the recent upside wave) and then 1.3100 (the psychological number). The technical bias shall remain bullish as long as the 1.2700 support area is intact.
US Jobless Claims
New applications for U.S. jobless benefits unexpectedly fell last week and the number of Americans on unemployment rolls tumbled to a 28-1/2-year low, pointing to rapidly shrinking labor market slack. The economy’s brightening prospects were further boosted by other data on Thursday showing a sharp acceleration in factory activity in the mid-Atlantic region in May as manufacturers reported a jump in goods shipments and more hours for workers. In addition, a gauge of future U.S. economic activity rose again in April. The raft of upbeat economic data supports an interest rate hike next month, though the Federal Reserve’s decision could also hinge on the state of financial markets, which have been rattled in recent days by President Donald Trump’s scandals.
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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