• GBP/USD faces a major test next week with data releases and interest rate decisions from the Federal Reserve and the Bank of England.
• Jobless claims and Non-farm Payrolls to provide fresh momentum.
• Technicals favor Dollar strength as DXY signals potential strengthening dollar.
Markets are gearing up for fresh labor market data that will indicate how the Federal Reserve will approach future interest rates decisions. Economists expect the number of Americans who filed for first time unemployment aid came in at seasonally adjusted 222,000 last week.
Despite the optimism, some economists and analysts have warned that markets have had mixed bias about rate cuts and the upcoming job data report will be crucial in determining and understanding the chances of a soft landing- where the Fed manages to avert a recession.
The lower highs and lower lows since the GBP/USD top out in November means the path of least support is still to the downside for the cable.
I would be inclined to look for bearish setups around key support levels turn resistance around 1.26400 and 1.2600. These levels were previously resistance.
With price trading between the 1.26000 and 1.25400 level and breach of 1.25400 would indicate more USD strength.
• Jobless claims and Non-farm Payrolls to provide fresh momentum.
• Technicals favor Dollar strength as DXY signals potential strengthening dollar.
Markets are gearing up for fresh labor market data that will indicate how the Federal Reserve will approach future interest rates decisions. Economists expect the number of Americans who filed for first time unemployment aid came in at seasonally adjusted 222,000 last week.
Despite the optimism, some economists and analysts have warned that markets have had mixed bias about rate cuts and the upcoming job data report will be crucial in determining and understanding the chances of a soft landing- where the Fed manages to avert a recession.
The lower highs and lower lows since the GBP/USD top out in November means the path of least support is still to the downside for the cable.
I would be inclined to look for bearish setups around key support levels turn resistance around 1.26400 and 1.2600. These levels were previously resistance.
With price trading between the 1.26000 and 1.25400 level and breach of 1.25400 would indicate more USD strength.
