The Great Britain Pound (GBP) slips down against the US Dollar (USD) on Friday, decreasing the price to less than 1.2900. The price decreases after a major economic release with respect to building permits in the United Kingdom. The technical bias might remain bullish since during the last move a lower high was printed.
GBP/USD Technical Analysis
As of this writing, the pair is being traded around 1.2841, an immediate trend line resistance may come across the price around 1.2998, ahead of 1.3100, the psychological number and then 1.3377, the key horizontal resistance as shown in the graph below.
Coming towards the downside, the price is likely to observe support around 1.2666, the major horizontal support. Another support may also hit the price around 1.2501, the 38.2% Fib level ahead of 1.2294, the trend line support which may prevent the price from falling below this level as shown in the graph above. The technical bias shall remain bullish as long as 1.2669, the major horizontal support is in place.
The United States’ 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.
Keeping in view the past behavior of the price, buying the pair around the current level may be a good decision in the short term. Although the price fell below today but it is likely to follow the bullish pattern and shall rise soon, therefore, those who wish to take long positions may also try their fate.