GBPUSD Poised for Bearish Reversal amid Key Economic Data

The Great Britain Pound (GBP) inched higher against the US Dollar (USD) on Thursday, increasing the price of GBPUSD to more than 1.3450 following some key economic events. The technical bias remains bullish because of a higher low in the recent upside rally.

GBP/USD Technical Analysis

As of this writing, the pair is being traded near 1.3494. A hurdle may be noted around 1.3834 (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 1.3400 (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 Public Sector Borrowing

The government borrowed £28.3bn between April and August, the lowest since 2007, official figures published today showed. The figure was £200m lower than the same period last year, the Office for National Statistics (ONS) said.

The public sector borrowed £5.7bn in the month of August, down £1.3bn from the same period last year, the lowest figure for August since 2007. Meanwhile, net debt rose to £1.77trillion at the end of August, up £151bn on last year, and equivalent to 88 per cent of GDP.

Trade Idea

Considering the overall technical and fundamental outlook, buying the pair around current levels may be a good strategy in short to medium term.

 

usmanahmed7290@gmail.com'

Usman Ahmed

Usman Ahmed is an individual forex trader and market analyst. He holds a Masters of Business Administration (MBA) degree. His work includes fundamental and technical reports on various currency pairs, commodity futures and stock markets. His technical analysis features price action strategies.

More Posts

By with No Comments 0

Related Posts

No posts were found for display