The Great Britain Pound (GBP) declined against the US Dollar (USD) on Tuesday, decreasing the price of the GBPUSD pair to less than 1.3100, ahead of the US Non-Defense Capital goods order news. The technical bias remains bullish since the GBPUSD price printed a higher high during the last upside move.
As of this writing, the GBPUSD is being traded around 1.3063, with a few support levels listed below;
S1 = 1.3010, the immediate horizontal support
S2 = 1.3000, the psychological number
S3 = 1.2841, the 23.6% Fib level
On the upside, some resistance levels that might be seen on the chart are indicated below;
R1 = 1.3192, the upper trendline arm
R2 = 1.3266, the major horizontal resistance
R3 = 1.3300, the psychological number
The technical bias is expected to remain bullish as long as 1.2841, the major horizontal support remains intact.
US Non-Defense Capital Goods Orders Ex Aircraft
The US Consensus Bureau is scheduled to release the numbers concerning the US Non-Defense Capital Goods Orders that doesn’t include aircrafts. According to the forecast of economists, the US Non-defense capital orders registered a reading of 1.9% in July, as compared to 3.4% in the month before. Since Non-defense capital goods involve heavy investment, therefore, these goods tend to be sensitive for the US economy and are considered as important economic indicator. Generally speaking, higher reading is seen as bullish for the USD but suggests a bearish market for the GBPUSD and vice versa.
Considering the overall price behaviour of the pair for the past few days, buying or selling GBPUSD near above-mentioned levels, can have favourable results in short to medium term trading.