The Great Britain Pound (GBP) inched lower against the US Dollar (USD) on Wednesday, decreasing the price of GBPUSD to less than 1.3450 following some key economic events. The technical bias remains bullish because of a higher low in the recent downside move.
GBP/USD Technical Analysis
As of this writing, the pair is being traded near 1.3422. A hurdle may be noted around 1.3655 (a major horizontal resistance zone) ahead of 1.3900(a psychological level) and then 1.3943 (another major resistance area).
On the downside, a support can be noted around 1.3000 (a psychological number) ahead of 1.2634 (the low of the last major downside move) and then 1.2500 (the confluence of horizontal support as well as psychological number) as demonstrated in the given above chart. The technical bias shall remain bullish as long as the 1.2700 support area is intact.
UK Markit Services PMI
Britain’s economy is ending 2017 lagging the euro zone’s strong recovery as the effects of last year’s Brexit vote weigh on shoppers and on businesses, according to a range of data released on Tuesday.
The monthly IHS Markit/CIPS services Purchasing Managers’ Index (PMI), covering businesses from hotels to hairdressers, fell to 53.8 in November from to 55.6 in October, at the low end of most forecasts from economists polled by Reuters.
Considering the overall technical and fundamental outlook, buying the pair around current levels may be a good strategy in short to medium term.