Fundamental Analysis
GBP/USD ended the trading week with a last-minute win after the US Non-Farm Payrolls (NFP) missed expectations, sending the greenback lower across the board.
The pound fell this week after the Bank of England (BoE) delivered a 25 basis point interest rate cut on Thursday morning, while US jobs data provided further warning signs that the US economy may be contracting faster than investors initially expected.
The US will see the ISM Manufacturing Purchasing Managers’ Index (PMI) for July on Monday. On the UK side, BRC Retail Sales for the year ending July are expected to rebound to 0.3% after a -0.5% decline in the previous period.
Technical Analysis
GBPUSD forms a wide range after the NF announcement with the nearest support resistance in the range of 1.286 and 1.270. On the H4 timeframe, EMA 34 is below EMA 89, indicating that the market structure is leaning towards a bearish trend with the lowest retracement around the support zone of 1.262. On the other hand, any daily close above the resistance level of 1.286 and candle close above both EMAs confirms an uptrend with the weekly resistance peak at 1.294
Resistance: 1.286-1.294
Support: 1.270-1.262
Trading Signals
BUY GBPUSD zone 1.262-1.260 Stoploss 1.258
SELL GBPUSD zone 1.294-1.296 Stoploss 1.298