GBP/USD Forecast: darting back towards 1.3600 handle ahead of NFP

Haresh Menghani FXStreet

The GBP/USD pair built on previous session's rebound from the 1.35 neighborhood and traded with a positive bias for the second consecutive session. Yesterday's up-move was supported by better-than-expected UK services PMI and got an additional boost from some renewed US Dollar selling bias, despite stronger ADP report on the US private sector employment.

There isn't any market-moving economic data due for release from the UK and hence, the USD price dynamics would remain an exclusive driver of the pair's momentum ahead of today's key non-farm payrolls data.

From a technical perspective, the pair remains within a broader trading range between the 1.3500-1.3600 region and hence, it would be prudent to wait for a decisive break in either direction before positioning for the next leg of directional move.

From current levels, the 1.3600 handle, marking 61.8% Fibonacci expansion level of 1.3062-1.3550 up-move, and subsequent retracement, might continue to act as immediate strong resistance, which if conquered sets the stage for an extension of the pair's near-term bullish momentum back towards 2017 yearly tops resistance near the 1.3655-60 region.

On the flip side, bulls might continue to defend a short-term descending trend-line resistance break area, now turned support, near the 1.3500-1.3490 region, below which the pair is likely to accelerate the corrective slide back towards 1.3435-30 zone en-route the 1.3400 handle and 1.3385 horizontal support.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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