Daily technical and trading outlook – GBP/USD
GBP/USD – 1.2047.. Although cable swung sideways in Asia, price rallied on short covering in sterling following news of UK PM’s resignation, price rose to 1.2024 b4 retreating to 1.1949 in NY but later hit session highs of 1.2030.
On the bigger picture, despite cable’s brief break of 2016 post-Brexit low of 1.1491 to a near 35-year trough of 1.1412 in mid-Mar 2020 on safe-haven USD’s demand following free fall in global stocks, price rallied to 1.3686 on the last trading day of 2020 following a last-minute EU-UK trade deal, then to a near 34-month 1.4241 peak in Feb suggests a major low is made. Having said that, cable’s erratic fall to 1.2162 in Dec 2021 n then continued decline this year to a 2-year bottom at 1.1934 in mid-Jun n Tue’s break there suggests correction fm 1.1412 is over n may head to 1.1800, ‘bullish convergences’ on daily indicators should keep price abv 1.1682. Only abv 1.2189 risks stronger gain twd 1.2332. Read more …
GBP/USD keeps the red below 1.2000 mark amid modest USD uptick post-NFP
The GBP/USD pair struggled to capitalize on its intraday bounce from the 1.1920 region and attracted fresh selling in reaction to mostly upbeat US employment details. The pair was last seen trading around the 1.1985-1.1980 region, down nearly 0.35% during the early North American session.
The intraday US dollar pullback from a two-decade high was quickly bought into after the headline NFP showed that the US economy added 372K jobs in June. This was slightly below the previous month’s downwardly revised reading of 384K, though it was well above the 268K anticipated. Adding to this, the Unemployment Rate held steady at 3.6%, as expected, and cemented expectations for a more aggressive policy tightening by the Fed. Read more …
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