Pound vulnerable into UK Employment report (GBPUSD forecast)

Intermediate
  • The Pound Sterling has been trading weak against the US Dollar (GBPUSD) so far in 2020.
  • This has been driven by both UK macroeconomic data disappointing and members of the Bank of England Monetary Policy Committee indicating a potential rate cut.
  • Today’s focus will be on the UK Employment report and for possible further weakness showing for the UK economic situation.
  • Here we look at the technical risks for GBPUSD, both short- and intermediate-term.

GBPUSD day trade outlook: Bear threat to key 1.2904

A negative tone during the US MLK holiday on Monday to push below 1.2985 support to 1.2962, to reinforce Friday’s selloff and retain negative forces from last week’s earlier plunge through numerous supports (at 1.3012, 1.3000 and 1.2969), to leave the bias lower into Tuesday.

  • We see a downside bias for 1.2962 and 1.2954; a break below aims for key 1.2904, maybe towards 1.2882/79.
  • But above 1.3060 targets 1.3119/24; above opens risk up towards 1.3169.

GBPUSD intermediate-term outlook

We see an intermediate-term range theme defined by 1.2904 to 1.3284.

Upside risks: Above 1.3284 sets an intermediate-term bull trend and upside risk for and 1.3422, 1.3515, 1.3618 and 1.4000.

Downside risks: Below 1.2904 sets an intermediate-term bear trend and aims for 1.2768, 1.2516 and maybe 1.2197.

4 Hour GBPUSD Chart

gbpusd chart

Steve Miley

Editor in chief

Steve Miley has 29 years of financial market experience and as a seasoned expert now has many responsibilities. He is the founder, Director and Primary Analyst at The Market Chartist, the Editor-in...continued

Comment on this video

Your email address will not be published. Required fields are marked *


Latest Related News

Pound hangs onto a positive outlook into U.K. Employment report (GBPUSD forecast)

An erratic tone and a slight dip lower for the Pound against the US Dollar from the end of last week to start this week.But the more recent move Monday-Tuesday has been more a reaction to US Dollar strength after a modest “risk off” tone overnight after Apple (AAPL) warns on coronavirus impact.We still see a positive bias for GBPUSD from last week’s U.K. Cabinet… Continued

Riskier assets stay strong, as coronavirus fears ebb

As we highlighted in last week’s Macro Watch, global financial markets remain fully focused on the coronavirus.Although markets remain on edge, the underlying theme of “risk on” continues to dominate, although punctuated by brief spells of “risk off” with quick, usually brief corrective moves.This was best highlighted last week when during an erratic 24-36 hours for financial market assets, we saw a shift back to… Continued

Pound vulnerable to renewed losses (GBPUSD forecast)

The GBPUSD Forex rate has been probing higher in a corrective recovery theme this week, with slightly better data coming through on the U.K. economy.However, prior bearish technical signals still leave GBPUSD vulnerable to further losses into this week.   GBPUSD day trade outlook: Negative tone  A Tuesday-Wednesday rebound above 1.2969/79 resistances, but then stalling from below 1.3010 (from 1.2991), thereby holding onto negative forces from the… Continued

Euro approaches major support zone (EURUSD)

EURUSD bearish and aims at key supportAussie breaks down (AUDUSD)Cable bear signal  (GBPUSD) Continued

Pound poised for a more negative shift (GBPUSD forecast)

The US Dollar has been broadly firm throughout the latest shift to a “risk on” theme for global equity markets through this week, for the start of February.This has seen GBPUSD accelerating, then grinding lower, particularly with mounting concerns regarding the difficulties that are posed by the trade negotiations with the EU, in a post-Brexit world.The threat into today’s always much watched US Employment reports,… Continued

Forex Brokers in your location