Market Outlook
GBPUSD may succumb to losses as market favours greenback. - Zeal Capital Market

GBPUSD may succumb to losses as market favours greenback.

03-02-2023 07:33

“Pound sterling tumbles as investors flock towards greenback prior to Nonfarm Payrolls.”

GBPUSD capped at 1.2460, suppressed by immense selling pressure while investors turn their head towards US Nonfarm Payrolls report. Moreover, selloff on pound sterling was further emphasized as investors shrugged off Federal Reserve’s possibility in pausing policy tightening. In terms of Nonfarm Payrolls, the market is expecting an increase of 185K, while unemployment rate tick up by 0.1% to 3.6%.

Quick recap on GBPUSD

The pair fails to make substantial gains, remains well below the 200-MA line.

GBPUSD Weekly Technical Analysis

GBPUSD may succumb to losses as market favours greenback. - Zeal Capital Market

The pair succumb to selling pressure near 1.2460, highlighting possible downturn in the near-term.

GBPUSD Daily Technical Analysis

GBPUSD may succumb to losses as market favours greenback. - Zeal Capital Market

From daily perspective, recent retracement from nearest resistance level foreshadows the formation of double top.

Trading Idea

GBPUSD may succumb to losses as market favours greenback. - Zeal Capital Market

ORDER: SELL STOP

ENTRY: 1.2100

STOP LOSS: 1.2180

Target 1: 1.2000

Target 2: 1.1900

ZFX Analyst’s Comment

Overall signal is skewed towards the downside for near-term, with a close below 200-MA line acts as a confirmation.

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.

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