- 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