Forex Trading Technical Analysis (GBP/USD) – October 21, 2019

Forex Trading Technical Analysis (GBP/USD) – October 21, 2019

The Great Britain Pound (GBP) slips down against the US Dollar (USD) on Monday, decreasing the price of GBPUSD to less than 1.3000. The price decreases amid a major economic release concerning building permits. The technical bias might remain bullish because the price marked a lower high in the recent downside move.

GBP/USD Technical Analysis

As of this writing, the pair is being traded around 1.2914. a support may be seen around 1.2837, the 61.8% Fib level support. Another support is likely to hit the price around 1.2669, the major horizontal support and then 1.2265, the trend line support might stop the price making it stay below the said level as shown in the graph below.


Coming towards the upside, The resistance can be seen around 1.2980, an immediate trend line resistance ahead of 1.3100, the psychological number and then 1.3377, the key horizontal resistance level comes in place thereby preventing the price from increasing above the said level as shown in the graph above. The technical bias shall remain bullish as long as 1.2837, the key horizontal support is in place. 

US Building Permit Release

The US Census Bureau releases stats with respect to building permits showing the number of permits for new construction projects. It implies the movement of corporate investments (US economic development). It tends to cause some volatility to the USD. Generally speaking, the more growing number of permits, the more positive (or bullish) for the USD and vice versa.


Considering the price behavior of the pair over the last few days, buying the pair around current levels may still be a good decision in the short to medium term. Although the price seems to be decreasing but the trend is likely to remain bullish and sooner or later the price is likely to start increasing again.

By Desislava Yunakova
Desi was one of our financial journalist trainee, someone who's now moved on to be a Strategic Analyst at Whirlpool.

Investing is speculative. When investing your capital is at risk. This site is not intended for use in jurisdictions in which the trading or investments described are prohibited and should only be used by such persons and in such ways as are legally permitted. Your investment may not qualify for investor protection in your country or state of residence, so please conduct your own due diligence. This website is free for you to use but we may receive commission from the companies we feature on this site. Click here for more information.