Technical Bias: Bearish
Key Takeaways:
- GBPUSD rallies as US durable goods report looms
- Ascending triangle looks vulnerable
- 1.5000 remain key support area
The Great Britain Pound (GBP) extended upside movement against the US Dollar (USD) yesterday, increasing the price of GBPUSD to more than 1.5050 ahead of the US Durable Goods data which is due today in the early New York session. The pair looks set for a breakout through the daily ascending triangle.
Technical Analysis
As of this writing, the pair is being traded near 1.5033. A support may be seen around 1.5000, the confluence of psychological number as well as trendline support as demonstrated in the following daily chart. A break and daily closing below the ascending triangle could open doors for a deeper correction towards the 1.4550 support area.
On the upside, the pair is likely to face a hurdle near 1.5071, the trendline resistance ahead of 1.5163, the high of last major upside move. The technical bias will remain bearish as long as the 1.5163 resistance area is intact.
Durable Goods Orders
American manufacturers received 0.6% durable goods orders in March as compared to -0.4% in the month before, the average forecast of different analysts says. Generally speaking, higher durable goods orders are considered positive for the US economy and vice versa. The actual figure will be released today during the New York morning session. A better than expected actual figure could spur renewed selling pressure in the price of cable and vice versa.
Trade Idea
Considering the overall technical and fundamental outlook, selling pair around the current levels could be a good option if we get a bearish pin bar or bearish engulfing candle on the daily chart.
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