GBP/USD Slides Down As Bears Gain Momentum

The Great Britain Pound (GBP) inched lower against the US Dollar (USD) on Monday, decreasing the price of GBPUSD to less than 1.3150 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 1.3110. A hurdle may be noted around 1.3158 (the high of the last major upside rally) ahead of 1.3247 (another key horizontal resistance) and then 1.3300 (the psychological number).

On the downside, a support can be noted around 1.2700 (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 Mortgage Data

The Bank of England released the following data for mortgage lending, consumer credit and M4 money supply (previous data in brackets) on Monday.  Number of mortgage approvals june may forecast 64,684 65,109 (65,202) 65,000 lending to individuals (net change in bln stg).

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was at 93.25 by 02.29 a.m. ET (06.29 a.m. GMT), after ending Friday’s session down around 0.6%. The index has fallen around 2.2% so far this month and is down around 9% for the year to date.

The dollar remained on the back foot after data on Friday showing that while U.S. economic growth accelerated in the second quarter wage growth and inflation remained sluggish.

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.

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