Forex Trading: Technical Analysis (GBPUSD) – October 04, 2019
The Great Britain Pound (GBP) inched higher against the US Dollar (USD) on Friday, increasing the price of GBPUSD to more than 1.2300. The price of the pair increased after major economic news released. The technical bias may remain bullish because the pair’s price marked a lower high in the recent downside move.
GBP/USD Technical Analysis
As of this writing, the pair is being traded around 1.2351, the price of the pair may encounter resistance around 1.2499, the trendline resistance level. Another resistance may come at 1.2570, the trend line resistance and then comes to 1.2834, the 61.8% Fib level which is likely to act as a strong resistance preventing the price of the pair from increasing above this level as demonstrated in the given below chart.
Coming towards the downside, An immediate 23.6% Fib level support can be seen around 1.2291, ahead of 1.2235, the trend line support and then comes 1.1955, the major horizontal support which is likely to prevent the price from falling further as demonstrated in the given above chart. The technical bias shall remain bullish as long as 1.2194, the major horizontal support level remains intact.
United States’ Labor Force Participation Rate
In the United States, the figure with respect to the labor force participation rate remained 63.0 in July, as compared to 62.9 during the month before. However, the economists remained quiet on predicting their stance in this regard. The data is copied from the news released by the Bureau of Labor Statistics Department of Labor, United States.
The figures have been put forwarded after taking into account the age factor of labors including both employed and those who are still looking for a job. It is presented in percentage of the total number of people either being employed or unemployed. Generally speaking a high reading in this regard represents a bullish trend for the US Dollar (USD) whereas a low reading suggests a bearish market for the US Dollar (USD).
Considering the overall price behavior of the pair over the last couple of days, buying the GBPUSD around current levels can be a good decision in short to medium term. However, sticking to economic calender only might not work, you also need to find brokers offering exceptional leverage levels and competitive spreads so you may find enough margin while trading your pair around. It is to be noted that high leverage can lead you to severe losses if there no negative balance protection is in place.
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