something interesting

<  BACK TO Market Analysis

GBP/USD take ahead

FOREX_gbpusd-take-ahead-0405_FXPIG
  • Thursday's doji candle shows the bears may have run out of steam near 200-day MA support.
  • The relief could be short-lived if the US wage growth figure betters estimates.

The GBP/USD pair created a doji candle yesterday, signaling the bears are having a breather ahead of the US April payrolls and wage growth release.

Note, the doji candle has been created at the 200-day moving average support, so the bears would want to see a convincing move below the key moving average before hitting the market with fresh offers.

Focus on US wage growth figure

The average hourly earnings are seen rising 0.2 percent in April vs 0.3 percent in March. A better-than-expected reading would boost concerns about rising inflation and add credence to the argument that Fed would hike rates at a faster pace. Thus, GBP/USD may find acceptance below the 200-day MA.

On the other hand, an oversold relative strength index (RSI) and the doji candle (bearish exhaustion) would come into play and yield corrective rally if the wage growth prints below estimates.  

Further, the pair would also take cues from the non-farm payrolls number, jobless rate, and labor force participation rate.

The British Pound could also find bids if the Brexit supporters across England, hand PM Theresa May's Conservative party crucial gains in the local elections. As per Business Insider, expectations for Corbyn's party are high but may fall short in the Brexit-voting areas.

GBP/USD Outlook

"In the 4 hours chart, a bearish 20 SMA caps the upside, now around 1.3645, while technical indicators recovered from oversold readings and head higher, but the RSI currently at 34, far from indicating renewed demand for the Pound but barely reflecting the latest correction. This Friday is all about Payrolls, yet even if US data disappoints, chances of a Sterling strong recovery remain well limited."

Support levels: 1.3540 1.3500 1.3465

Resistance levels: 1.3610 1.3645 1.3690

Source: fxstreet.com

  • Thursday's doji candle shows the bears may have run out of steam near 200-day MA support.
  • The relief could be short-lived if the US wage growth figure betters estimates.

The GBP/USD pair created a doji candle yesterday, signaling the bears are having a breather ahead of the US April payrolls and wage growth release.

Note, the doji candle has been created at the 200-day moving average support, so the bears would want to see a convincing move below the key moving average before hitting the market with fresh offers.

Focus on US wage growth figure

The average hourly earnings are seen rising 0.2 percent in April vs 0.3 percent in March. A better-than-expected reading would boost concerns about rising inflation and add credence to the argument that Fed would hike rates at a faster pace. Thus, GBP/USD may find acceptance below the 200-day MA.

On the other hand, an oversold relative strength index (RSI) and the doji candle (bearish exhaustion) would come into play and yield corrective rally if the wage growth prints below estimates.  

Further, the pair would also take cues from the non-farm payrolls number, jobless rate, and labor force participation rate.

The British Pound could also find bids if the Brexit supporters across England, hand PM Theresa May's Conservative party crucial gains in the local elections. As per Business Insider, expectations for Corbyn's party are high but may fall short in the Brexit-voting areas.

GBP/USD Outlook

"In the 4 hours chart, a bearish 20 SMA caps the upside, now around 1.3645, while technical indicators recovered from oversold readings and head higher, but the RSI currently at 34, far from indicating renewed demand for the Pound but barely reflecting the latest correction. This Friday is all about Payrolls, yet even if US data disappoints, chances of a Sterling strong recovery remain well limited."

Support levels: 1.3540 1.3500 1.3465

Resistance levels: 1.3610 1.3645 1.3690

Source: fxstreet.com

lastest Articles

Market Analysis
AUD/USD weakens back closer to mid-0.7500s
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Today: Yen corrects lower in Asia, German IFO, UK growth figures eyed
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
PAMM News
Managed Forex Accounts Daily Results (24.05.2018)
https://en.gravatar.com/userimage/34011725/cac48086660b253b9c1e53a8b4a23604.png
Market Analysis
Dollar slips, hits two-week low vs. yen as Trump nixes North Korea summit
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Mr. Markets
Exotic; Great for Cocktails Bad for Traders
https://secure.gravatar.com/avatar/8b0332acc130dc650331fd558f82add2
Market Analysis
Euro edges up as dollar surge loses steam on Fed minutes
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Quips of Wisdom
FOREX Trading Quote:If you want to be in the top 5% of money managers, you have to be willing to be in the bottom 5%, too.
https://en.gravatar.com/userimage/34011725/cac48086660b253b9c1e53a8b4a23604.png
Market Analysis
USD/JPY bounces off lows, still in red below 110.00 handle
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/USD up smalls above 1.1700 ahead of ECB minutes
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Today: US dollar sold-off into fresh US tariffs, eyes on UK retail sales
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
PAMM News
Managed Forex Accounts Daily Results (23.05.2018)
https://en.gravatar.com/userimage/34011725/cac48086660b253b9c1e53a8b4a23604.png
Market Analysis
GBP/USD downside risks remain - Scotiabank
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Euro plunges as risk aversion, Italy concerns weigh
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Sterling slides to new 2018 low on weak UK inflation
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Quips of Wisdom
FOREX Trading Quote:If you don't have time to do it right, when will you have time to do it right
https://en.gravatar.com/userimage/34011725/cac48086660b253b9c1e53a8b4a23604.png
Market Analysis
USD/JPY plummets to lows, farther below 110.00 mark
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
USD/CAD jumps back above mid-1.2800s, closer to weekly tops
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Today: Risk-off grips Asia - Yen outperforms, Eurozone flash PMIs, UK inflation - Up next
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
PAMM News
Managed Forex Accounts Daily Results (22.05.2018)
https://en.gravatar.com/userimage/34011725/cac48086660b253b9c1e53a8b4a23604.png
Market Analysis
AUD/USD up for the third day, holds near 0.7600
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
WTI eases from multi-year tops, around $72.30 ahead of API
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/GBP trades below the 0.8800 handle ahead of UK’s inflation on Wednesday
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Quips of Wisdom
FOREX Trading Quote: in accordance to means-Livermore
https://en.gravatar.com/userimage/34011725/cac48086660b253b9c1e53a8b4a23604.png
Market Analysis
Dollar slips as rally loses momentum
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Mr. Markets
If you can’t make it, don’t lose it!
https://secure.gravatar.com/avatar/8b0332acc130dc650331fd558f82add2
Market Analysis
USD/JPY recovers early lost ground, retakes 111.00 mark
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
PAMM News
Managed Forex Accounts Daily Results (21.05.2018)
https://en.gravatar.com/userimage/34011725/cac48086660b253b9c1e53a8b4a23604.png
Market Analysis
USD/CAD break below 1.2850 and extends correction
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Gold capped at $1290.00/oz amid risk-on mood
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/USD upside capped around 1.1780
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Quips of Wisdom
FOREX Trading Quote: Gut feel-Marcus
https://en.gravatar.com/userimage/34011725/cac48086660b253b9c1e53a8b4a23604.png
Market Analysis
USD/JPY recedes from tops, around 111.30 ahed of Fedspeak
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Sterling falls as dollar climbs, EU customs union concerns weigh
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Today: US dollar cheers Asia risk-on, holiday-thinned trading to extend
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Market Events Ahead
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
PAMM News
Managed Forex Accounts Weekly Update (14-18.05.2018)
https://en.gravatar.com/userimage/34011725/cac48086660b253b9c1e53a8b4a23604.png
Market Analysis
Dollar Rises Amid Italian Coalition and China-US Trade Uncertainty
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
PAMM News
Managed Forex Accounts Daily Results (18.05.2018)
https://en.gravatar.com/userimage/34011725/cac48086660b253b9c1e53a8b4a23604.png
Market Analysis
USD/JPY fades 111.00 handle in tandem with US yields
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
GBP/USD challenges 2-week old trading range support near mid-1.3400s
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/USD tumbles further to 1.1750, fresh 2018 lows
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Quips of Wisdom
Forex Trading Quote: putting things together-Kovner
https://en.gravatar.com/userimage/34011725/cac48086660b253b9c1e53a8b4a23604.png
Market Analysis
EUR/GBP clings to strong recovery gains, but lacks follow through
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Tech Targets: EUR/USD, GBP/USD, AUD/USD, NZD/USD, USD/JPY - UOB
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Today: Yen hit a four-month low in Asia as T-yields kept climbing, risk-on likely in Europe
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
PAMM News
Managed Forex Accounts Daily Results (17.05.2018)
https://en.gravatar.com/userimage/34011725/cac48086660b253b9c1e53a8b4a23604.png
Market Analysis
Gold unable to recover as USD remains strong supported by yields
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
AUD/USD bears struggle to push it through 0.75 handle
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
USD/JPY continues to move higher, inching closer to 111.00 mark
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Quips of Wisdom
FOREX Trading Quote: passion and energy-Buffet
https://en.gravatar.com/userimage/34011725/cac48086660b253b9c1e53a8b4a23604.png
Market Analysis
Euro slips on Italian political risk and U.S. bond yield rise
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Tech Targets: EUR/USD, GBP/USD, AUD/USD, USD/JPY - UOB
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Today: Sterling strongest in Asia on Brexit news, a quiet session ahead
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
PAMM News
Managed Forex Accounts Daily Results (16.05.2018)
https://en.gravatar.com/userimage/34011725/cac48086660b253b9c1e53a8b4a23604.png
Market Analysis
NZD/USD counter-move to 0.6900 as the US Dollar is taking a break
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
USD/CAD stays rangebound near term – Scotiabank
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/USD tumbles to fresh 2018 lows near 1.1760
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Quips of Wisdom
FOREX Trading Quote:learning of mistakes-Livermore
https://en.gravatar.com/userimage/34011725/cac48086660b253b9c1e53a8b4a23604.png
Market Analysis
Dollar nears five-month high on bond yield surge, euro unfazed by Italy
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Tech Targets: EUR/USD, GBP/USD, AUD/USD, NZD/USD, USD/JPY - UOB
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Today: Safe-havens bid in Asia on N. Korea news, Eurozone CPI, Draghi’s speech eyed
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
PAMM News
Managed Forex Accounts Daily Results (15.05.2018)
https://en.gravatar.com/userimage/34011725/cac48086660b253b9c1e53a8b4a23604.png
Market Analysis
GBP/USD bulls reclaim the 1.3500 handle amid USD profit-taking
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/USD bounces off fresh 2018 lows around 1.1820
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
AUD/USD bears back in control, hammered down to mid-0.7400s
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Quips of Wisdom
FOREX Trading Quote: plan and trade
https://en.gravatar.com/userimage/34011725/cac48086660b253b9c1e53a8b4a23604.png
Market Analysis
Sterling recovers losses after UK employment jump
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Tech Targets: EUR/USD, GBP/USD, AUD/USD, NZD/USD, USD/JPY - UOB
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Today: Aussie slips post-China data dump, UK earnings, Eurozone GDP on tap
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
PAMM News
Managed Forex Accounts Daily Results (14.05.2018)
https://en.gravatar.com/userimage/34011725/cac48086660b253b9c1e53a8b4a23604.png
Market Analysis
NZD/USD under pressure below 0.6940 ahead of Chinese data
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
WTI testing daily highs around $71.00
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
USD/JPY clings to daily gains near mid-109.00s but lacks follow-through
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Quips of Wisdom
FOREX Trading Quote: the importance of methodology-Marcus
https://en.gravatar.com/userimage/34011725/cac48086660b253b9c1e53a8b4a23604.png
Market Analysis
Euro extends gains as dollar rally loses steam
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
FOREX Tech Targets 14.05.2018: EUR/USD, AUD/USD, NZD/USD, USD/JPY - UOB
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Today: Aussie outperforms in Asia, a light calendar ahead
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Market Events Ahead
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Dollar Ends Rally Awaiting US Retail Sales Data
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
PAMM News
Managed Forex Accounts Daily Results (11.05.2018)
https://en.gravatar.com/userimage/34011725/cac48086660b253b9c1e53a8b4a23604.png
Market Analysis
USD/CAD stabilizing below 1.2800 handle after 70-pip boost
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/JPY above 130.50 post-Draghi speech
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
USD/JPY: Side of caution - Westpac
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Quips of Wisdom
FOREX Trading Wisdom: changing rule-Kovner
https://en.gravatar.com/userimage/34011725/cac48086660b253b9c1e53a8b4a23604.png
Market Analysis
Sterling headed for fourth successive weekly decline after BoE holds rates
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Tech Targets: EUR/USD, GBP/USD, AUD/USD, NZD/USD, USD/JPY - UOB
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Today: US dollar consolidates in Asia, a light session ahead
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
PAMM News
Managed Forex Accounts Daily Results (10.05.2018)
https://en.gravatar.com/userimage/34011725/cac48086660b253b9c1e53a8b4a23604.png
Market Analysis
GBP/USD at risk of additional weakness - Scotiabank
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/USD fades US CPI-led bullish spike, back below 1.1900 handle
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
FOREX Tech Targets 10.05.2018: EUR/USD, AUD/USD, NZD/USD, USD/JPY - UOB
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Quips of Wisdom
Forex Trading Quote: painful and disheartening
https://en.gravatar.com/userimage/34011725/cac48086660b253b9c1e53a8b4a23604.png
Market Analysis
EUR/GBP sticks to daily gains post-UK data, BoE in focus
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Gold consolidates in a range above $1310, US CPI awaited
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Today: Kiwi dumped on dovish RBNZ, UK data, Bank of England Super Thursday eyed
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
PAMM News
Managed Forex Accounts Daily Results (09.05.2018)
https://en.gravatar.com/userimage/34011725/cac48086660b253b9c1e53a8b4a23604.png
Market Analysis
USD/JPY: eyes on a break of 110 handle resistance to open 112 territories
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/USD could see gains extended to 1.2000/50
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
GBP/USD bulls challenge the 1.3600 handle as US Dollar retreats from highs
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Quips of Wisdom
Forex Trading Quote:your own judgement-livermore
https://en.gravatar.com/userimage/34011725/cac48086660b253b9c1e53a8b4a23604.png