Forex GBP/USD

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.

GBPUSD

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.

Conclusion

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.

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