GBPUSD is trading lower today, having hit yesterday the yearly high at 1.3485, and investors booking some profits off the table after the recent rally that boosted from the shift in Fed’s policy framework the previous week. Fed will focus on employment growth and will let inflation climb above the 2% target.
The correction in GBPUSD yesterday from eight-month highs started after the release of better than expected manufacturing data from the USA. The ISM Manufacturing PMI came in at 56, beating the estimates of 54.5 in August. The ISM Manufacturing Employment Index reported in at 46.4 topping the forecasts of 45.8 in August, while the ISM New Orders Index jumped to 67.6 well above the estimates of 53.5. The news helped the USD index to rebound from almost two-year lows.
U.K. House Prices Hit Record Highs
Earlier today, reported that the Nationwide House Price Index hit a 16-years high in August helped by a tax cut. Prices jumped by 2.0%, topping the consensus estimate of 0.5%, the yearly reading for Nationwide Housing Prices registered in at 3.7% above the forecasts of 2%. U.K. house prices have now reversed the losses the two previous months.
GBPUSD Price Analysis
GBPUSD is 0.19% lower at 1.3360, in a pullback that looks healthy as traders are booking some profits. The three-day strong rally drove the pair to overbought zone but the correction today, push the RSI index below the 70 mark. If you want to understand how technical analysis work, check Investing Cube’s forex trading course.
The intraday support for the pair stands at 1.3325 today’s low. More bids expected at 1.3158 the low from August 28. Next support for GBPUSD would be met at 1.3055 the low from August 25.
On the flip side, resistance for the GBPUSD is at 1.3402 the daily high. The high from yesterday trading session at 1.3484 would be the next hurdle. More selling pressure awaits at 1.3517 the high from December 13, 2019.
GBPUSD Daily Chart