Slobodan Drvenica
Windsor Brokers
GBP/USD
Cable is consolidating round pivotal Fibo barrier at 1.3837 in European trading on Friday, following Thursday’s 0.46% advance and awaiting US labor data for fresh signal.
Near-term structure firmed after Thursday’s lift above three-day congestion and close above converged 30/55/200DMA’s, but bulls need clear break above 1.3837 pivot to resume towards targets at 1.3893 / 1.3920 (Fibo 76.4% of 1.3893/1.3920 / 100DMA).
Rising 14-d momentum is about emerge into positive territory and additionally support the action, as MA’s turned to bullish setup and underpin.
US jobs data are likely to define pair’s near-term direction, with upbeat results to boost expectations for Fed tapering and lift dollar that would send sterling lower.
The second scenario (solid jobs data around forecast that would confirm stable recovery in the US labor sector but would signal tapering on hold), is favored among economists and would keep the dollar under pressure.
Finally, August NFP figure well below forecast would signal a substantial slowdown in the labor sector’s recovery and warn of economic stagnation that would hurt risk appetite and prompt traders into safe-haven dollar.
Broken 30/200DMA’s offer initial support at 1.3811, followed by broken Fibo 50% at 1.3792 and converging 20/10DMA’s (1.3770/61) which mark pivotal support, loss of which will be bearish.
Res: 1.3846; 1.3878; 1.3893; 1.3920.
Sup: 1.3811; 1.3792; 1.3761; 1.3731.
-637662586984106670.png)
Interested in GBP/USD technicals? Check out the key levels
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
Recommended Content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Geopolitics once again take centre stage, as UK Retail Sales wither
Nearly a week to the day when Iran sent drones and missiles into Israel, Israel has retaliated and sent a missile into Iran. The initial reports caused a large uptick in the oil price.