Downsides establish for GBPUSD?
“Upbeat US data opens up more room for GBPUSD towards the downside.”
Pair of GBPUSD extends its bearish bias gradually while market participants wait for more data from both UK and US. Last week, US Nonfarm Payrolls came in at 528,000, significantly higher than forecast of 250,000. Unequivocally, US economy is expected to see soaring price pressure as solid labor market is expected to bolster consumer spending in the coming months. As for UK, investors will keep an eye on GDP data as economists expects a downward shift due to prior economic conundrums.
Quick recap of GBPUSD
Overall, downward trendline continues to limit the pair’s ability from any substantial recovery.
GBPUSD Weekly Technical Analysis
From weekly perspective, the pair fails to extend its recovery from recent rebound, rejected near 1.2300.
GBPUSD Daily Technical Analysis
Recent price actions show possibility for a downside extension, with 1.2000 being the key support level for such move.
ORDER: SELL STOP
STOP LOSS: 1.2095
Target 1: 1.1800
Target 2: 1.1700
ZFX Analyst’s Comment
Recent price action cemented the course for GBPUSD towards the downside as it remains subjected by downward trendline. We expect the pair to gain more bearish momentum once next support level has been conquered.
Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations carried out in accordance with this article. Please be firm in your thinking and do the corresponding risk control.
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