The Great Britain Pound (GBP) extended upside movement against the US Dollar (USD) on Monday, increasing the price of GBPUSD to more than 1.2450 amid some key economic events. The technical bias remains bullish because of a higher low in the recent downside wave.
As of this writing, the pair is being traded around 1.2454. A hurdle can be noted near 1.2492, the confluence of trendline resistance as well as 38.2% fib level as demonstrated in the given below daily chart. A break and daily closing above the 1.2500 resistance shall incite renewed buying interest, validating a move towards the 1.2774 resistance zone.
On the downside, the pair is likely to find a support around 1.2300, the confluence of psychological number as well as trend line support ahead of 1.2015, the intraday low of Friday and then 1.1916, the swing low of 2016.
The dollar extended losses on Monday after U.S. President Donald Trump’s protectionist remarks. In his inauguration address on Friday, Trump pledged to put “America first”. He signaled he would abandon the Trans-Pacific Partnership and renegotiate NAFTA. Sterling traded above $1.24. British Prime Minister Theresa May is to meet Trump in Washington on Friday. ECB President Mario Draghi is due to speak later Monday.
Considering the overall technical and fundamental outlook, buying the pair around current levels appears to be a good strategy in short to medium term.