Could GBP reject the bearish temptation?
“US posted positive developments in terms of labour market, prompting a shift in market sentiment.”
GBPUSD surrendered its gains, sliding down towards multi weeks low after latest data from US lends some support to greenback. According to reports, the number of unemployment benefits filing increased less than expected, signalling tight labour market with more room for further economic growth. Its resilience may prompt Federal Reserve to continue its policy tightening efforts, confounding speculation for a possible divergence anytime soon.
Quick recap on GBPUSD
The pair failed to extend its ascend while selling pressure diverts the pair for a possible retracement in near-term.
GBPUSD Weekly Technical Analysis
From weekly perspective, the pair’s recent price action shows strong bearish presence near 1.2300.
GBPUSD Daily Technical Analysis
From daily perspective, the pair is currently testing near 200-MA line which coincided with the upward trendline.
Trading Idea
ORDER: BUY LIMIT
ENTRY: 1.1950
STOP LOSS: 1.1800
Target 1: 1.2130
Target 2: 1.2270
ZFX Analyst’s Comment
While breaching upward trendline may be a high possibility, we expect the pair to rebound from 1.1915 due to overall structure that still skewed towards the upside for long-term.
—
Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations carried out in accordance with this article. Please be firm in your thinking and do the corresponding risk control.
ZFX (Zeal Capital Market) is an FCA & FSA licensed online Forex & CFD broker providing more than 100 products for Forex, commodities, stock indices, and share CFDs. Open a trading account with min. USD 50 deposit and download our MT4 trading platform now!