- GBP/USD trades 0.68% lower on Friday after a positive session for the greenback.
- The dollar was boosted by an impressive non-farm payroll result.
GBP/USD hourly chart
After what seems like an eternity the US dollar has made a comeback today. The non-farm payroll data was the catalyst as the number beat analyst estimates of 1.6 million to print at 1.763 million. It will now be interesting to see if the price can continue to mean revert next week or carry back on with its relentless trend to the upside. Next week it is the UK's turn to release their latest employment data but it is hard to get the true figures as the Furlough system has not come to an end.
Looking at the chart now and the reversal has not completed its pattern. If the red support zone just under 1.30 breaks to the downside that would be a good indication that the trend might change as the wave low would be taken out. Then technicians may be looking for a lower high lower low pattern to be created.
For now, it is too early to call a trend change. On the upside, if the price breaks back above the resistance level at 1.31 then it could be over for the bears. Today it seems that the purple support level was very effective. It had been used on a couple of other occasions and this time the bulls were lying in wait.
The indicators are looking very bearish right now on the hourly chart. The Relative Strength Index has hit the oversold area and might retrace before the next move down. The MACD histogram is firmly in the red and the signal lines are under the mid-zone. Next week is pivotal for the pair as US CPI is out and the aforementioned UK employment figures. The main level to watch is the red horizontal line on the chart below.
-637324205841852591.png)
Additional levels
All information and content on this website, from this website or from FX daily ltd. should be viewed as educational only. Although the author, FX daily ltd. and its contributors believe the information and contents to be accurate, we neither guarantee their accuracy nor assume any liability for errors. The concepts and methods introduced should be used to stimulate intelligent trading decisions. Any mention of profits should be considered hypothetical and may not reflect slippage, liquidity and fees in live trading. Unless otherwise stated, all illustrations are made with the benefit of hindsight. There is risk of loss as well as profit in trading. It should not be presumed that the methods presented on this website or from material obtained from this website in any manner will be profitable or that they will not result in losses. Past performance is not a guarantee of future results. It is the responsibility of each trader to determine their own financial suitability. FX daily ltd. cannot be held responsible for any direct or indirect loss incurred by applying any of the information obtained here. Futures, forex, equities and options trading contains substantial risk, is not for every trader, and only risk capital should be used. Any form of trading, including forex, options, hedging and spreads, contains risk. Past performance is not indicative of future FX daily ltd. are not Registered Financial Investment Advisors, securities brokers-dealers or brokers of the U.S. Securities and Exchange Commission or with any state securities regulatory authority OR UK FCA. We recommend consulting with a registered investment advisor, broker-dealer, and/or financial advisor. If you choose to invest, with or without seeking advice, then any consequences resulting from your investments are your sole responsibility FX daily ltd. does not assume responsibility for any profits or losses in any stocks, options, futures or trading strategy mentioned on the website, newsletter, online trading room or trading classes. All information should be taken as educational purposes only.
Recommended content
Editors’ Picks
EUR/USD extends gains above 1.0700, focus on key US data
EUR/USD meets fresh demand and rises toward 1.0750 in the European session on Thursday. Renewed US Dollar weakness offsets the risk-off market environment, supporting the pair ahead of the key US GDP and PCE inflation data.
USD/JPY keeps pushing higher, eyes 156.00 ahead of US GDP data
USD/JPY keeps breaking into its highest chart territory since June of 1990 early Thursday, recapturing 155.50 for the first time in 34 years as the Japanese Yen remains vulnerable, despite looming intervention risks. The focus shifts to Thursday's US GDP report and the BoJ decision on Friday.
Gold closes below key $2,318 support, US GDP holds the key
Gold price is breathing a sigh of relief early Thursday after testing offers near $2,315 once again. Broad risk-aversion seems to be helping Gold find a floor, as traders refrain from placing any fresh directional bets on the bright metal ahead of the preliminary reading of the US first-quarter GDP due later on Thursday.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price.
US Q1 GDP Preview: Economic growth set to remain firm in, albeit easing from Q4
The United States Gross Domestic Product (GDP) is seen expanding at an annualized rate of 2.5% in Q1. The current resilience of the US economy bolsters the case for a soft landing.