GBPUSD may succumb to losses as market favours greenback.
“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
The pair succumb to selling pressure near 1.2460, highlighting possible downturn in the near-term.
GBPUSD Daily Technical Analysis
From daily perspective, recent retracement from nearest resistance level foreshadows the formation of double top.
Trading Idea
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.
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