GBPUSD surrenders to bears, new low in view?
“Investors await US Nonfarm Payrolls report which may signal the pace of inflation.”
Pound sterling adheres to bearish pressure as market participants placed higher bets upon US dollar prior to Nonfarm Payrolls report. For last month, investors are expecting Nonfarm Payrolls to increase by 268,000, a substantial decrease when compared to previous month. While a downbeat data may be detrimental to the greenback, the currency is expected to remain bullish in the long-term following divergence between Fed and other major central banks.
Quick recap on GBPUSD
GBPUSD remain subjected to bearish pressure as the pair failed to make any substantial recovery for the past few attempts.
GBPUSD Weekly Technical Analysis
From weekly perspective, the pair extended its losses after closing below 1.2277.
GBPUSD Daily Technical Analysis
Although the pair has recently rebounded from 1.1903 in daily perspective, overall trend is skewed towards the downside. This is apparent from recent price actions which lacks in momentum to perform an extended recovery.
Trading Idea
ORDER: SELL STOP
ENTRY: 1.1860
STOP LOSS: 1.1990
Target 1: 1.1700
Target 2: 1.1600
ZFX Analyst’s Comment
The pair is expected to extend its losses as interest rates and economic condition diverge between UK and the rest of the world. In terms of technical perspective, recent recovery which lacks substantial momentum may continue due to a shift of bulls towards the greenback.
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