GBP/USD Forecast: Overbought? Resistance eyed ahead of all-important Non-Farm Payrolls
Cool Britania – GBP/USD has broken above the downtrend resistance line and surged to new highs – buoyed by hopes of a coronavirus vaccine. Pfizer and BioNTech reported progress in initial tests, pushing stocks higher. That put pressure on the safe-haven dollar, and cable's break above that persistent line propelled the pound to higher ground.
Another effort to defeat COVID-19 is underway at Oxford University and is at a more stage – at least according to Dr. Anthony Fauci, America's leading epidemiologist. Read More...
GBP/USD Forecast: Bulls seize control as focus shifts to US NFP report
The GBP/USD pair attracted some dip-buying on Thursday and added to the previous day's strong positive move amid the emergence of some renewed US dollar selling. The positive headlines related to the development of a vaccine for COVID-19 boosted the global risk sentiment and undermined the greenback's relative safe-haven status. It is worth reporting that Biopharmaceutical New Technologies (BioNTech) announced on Wednesday that the COVID-19 vaccine – co-developed with the US pharmaceutical giant Pfizer – has shown potential and triggered a strong immune response in the early stage of human trials.
On the economic data front, the final UK Manufacturing PMI matched the preliminary reading and did little to provide any meaningful impetus to the British pound. From the US, the ADP report showed that private-sector employment rose by 2369K in June as compared to 3000K expected. A slight disappointment was negated by an upward revision of the previous month's reading to +3065K as against -2760 reported earlier. Read More...
GBP/USD analysis: Exceeded 1.2500
Yesterday, the GBP/USD exchange rate breached the medium-term descending channel north. During Thursday morning, the rate exceeded the 1.2500 level.
It is likely that the currency pair could gain support from the weekly R1 and the monthly PP at 1.2490. Thus, it is likely that some upside potential could prevail in the market, and the pair could target the 1.2600 level. Read More...
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