The Great Britain Pound (GBP) rose against the U.S. Dollar (USD) last week, increasing the price of the GBPUSD pair to more than 1.3800 ahead of the release of U.S. ISM Services PMI news. The technical bias remains bullish because the cable printed a higher high in the recent upside move.
Technical Analysis
As of this writing, the GBPUSD pair strengthens around 1.3827. While moving upside, the pair might face some resistance near the listed price levels.
Short-Term Resistance
1.3876 – the high of March 21, 2021
1.4001 – the horizontal resistance level
1.4100 – the psychological number
On the downside, the pair might find some support near the given below price levels.
Short-Term Support
1.3749 – the lower trendline arm
1.3600 – the psychological number
1.3566 – the 23.6% Fibonacci retracement
U.S ISM Services PMI News
The U.S. Institute for Supply Management (ISM) anticipates releasing numbers for the ISM Services PMI Today (April 05, 2021). According to economists, the ISM Services PMI might register a reading of 58.5 in March, as compared to the reading of 55.3, in the month before.
The ISM Services PMI news reflects business conditions of the non-manufacturing sector of the United States over the given time. Despite being a significant indicator of the U.S. economy, the ISM Services PMI data does not influence the country’s GDP as much as the manufacturing PMI does. Generally speaking, a reading above 50 strengthens the U.S. Dollar against the British Pound and suggests a bearish trend for the GBPUSD pair and vice versa.
Conclusion
Considering the price movement of the GBPUSD over the past few days, it may be a better option in the short term if the pair was bought around 1.3749. Due to the volatile nature of the market, however, prices may change and lead to different outcomes.