The Great Britain Pound (GBP) inched higher against the U.S. Dollar (USD) last week, increasing the price of the GBPUSD pair to more than 1.3900 ahead of the release of U.S. ISM Manufacturing PMI news.
Technical Analysis
As of this writing, the GBPUSD pair strengthens around 1.3954 with a few resistance levels in sight. The pair might face some hurdle near the given below price levels.
Short-Term Resistance
1.4029 – the upper trendline arm
1.4100 – the psychological number
1.4237 – the major horizontal resistance
On the downside, the GBPUSD might find some support near the listed price levels.
Short-Term Support
1.3766 – the low of March 04, 2018
1.3700 – the psychological level
1.3597 – the lower trendline arm
U.S. ISM Services PMI News
The Institute for Supply Management (ISM) is scheduled to release ISM Services PMI news today (March 03, 2021). Economists anticipate the reading for ISM Services PMI might remain the same in February, as it was 58.7, the month before.
Stats for ISM Services PMI reflects business conditions of the non-manufacturing sector within the United States over the given time. It is worth mentioning here that Services PMI doesn’t affect the U.S. Gross Domestic Product rate significantly, as compared to the Manufacturing PMI. Generally speaking, reading below 50 weakens the U.S. Dollar against the British Pound and suggests a bullish market for the GBPUSD pair and vice versa.
Conclusion
Considering the price movement of the precious metal over the past few days, it may be a better option in the short term if the pair was bought at around 1.3600. Due to the volatile nature of the market however, prices may change and lead to different outcomes.