The Great Britain Pound (GBP) inched higher against the US Dollar (USD) on Wednesday, increasing the GBP/USD price to more than 1.3400, following the release of the UK Gross Domestic Product (GDP) news. The technical bias remains bullish as the pair printed a higher high in the recent upside move.
Technical Analysis
As of this writing, the GBP/USD hovers around 1.3425. The price of the pair is likely to face resistance near the given below levels;
Short term resistance levels
1.3482, the high of September 01, 2020
1.3600, the psychological level
1.3623, a major horizontal resistance
On the downside, the GBP/USD price is expected to find significant support near the given below levels;
Short term support levels
1.3263, the low of November 23, 2020
1.3146, a key horizontal support
1.3036, 61.8% fibonacci retracement on daily chart
The technical bias should remain bullish as long as 1.3146, a key horizontal support level remains intact.
UK gross domestic product news
Britain’s GDP registered 16% increase in the third quarter, as compared to 15.5% increase in the quarter before, up beating the consensus of economists i.e. 15.5%, according to a report released by the UK’s statistic authority on Tuesday.
Generally speaking, the GDP data reflects the growth rate of a country. An upbeat (higher than expected) reading of GDP is seen as bullish for the cable and vice versa.
Conclusion
Considering the overall technical and fundamental outlook, selling the pair around current levels with a stop loss above 1.3650 could be a good trading idea. The GBP/USD pair is likely to test the 1.3000 support in short to medium term.