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Tuesday, April 16, 2024

Play of the Day: Will GBP/USD Hit New September Lows This Week?

In search of commerce concepts to begin the week?

GBP/USD is buying and selling across the 1.2500 main psychological deal with forward of the U.Okay.’s jobs report launch.

Will the report and this week’s market themes encourage merchants to increase GBP/USD’s months-long downtrend?

Let’s check out the 1-hour chart for clues.

GBP/USD 1-hour Forex

GBP/USD 1-hour Foreign exchange Charts by TV

In case you’ve learn the newest FX Weekly Recap, then you definately’ll know that the U.S. greenback made pips from the U.S. financial reviews supporting a hawkish bias for the Fed.

In the meantime, the British pound was weighed (heh) by BOE Governor Andrew Bailey saying that they’re over the upper charges frfr part and that financial coverage is now “restricted in its influence.”

We might see extra of the identical pro-USD, anti-GBP themes play out this early within the week.

In a bit greater than a day, the U.Okay. is predicted to print July labor market numbers which might be weaker than their June readings. So, until wage development wildly surprises to the upside, then Tuesday’s U.Okay. jobs knowledge could assist the BOE’s shifting biases and appeal to GBP/USD bears.

Renewed GBP promoting could bust GBP/USD from its present short-term vary. As you may see, Cable is ranging between the 1.2500 – 1.2600 zones whereas taking a breather from its months-long downtrend.

Relying on the place GBP/USD is in the course of the report’s launch, we might see the pair flip decrease from its mid-range degree close to the Pivot Level line or we might see a draw back breakout from its present vary.

Understand that, within the final two U.Okay. jobs knowledge releases, GBP has seen pullbacks earlier than extending its intraday development. Which means that a break-and-retest technique could also be an choice should you’re planning on buying and selling a attainable breakout.

If we see a pro-USD or threat averse buying and selling setting, then GBP/USD could appeal to sufficient bears to hit new September lows. I acquired my eyes on the 1.2400 psychological deal with however GBP/USD can also see shopping for strain at 1.2450.

What do you assume? Will this week’s USD-buying and weak U.Okay. jobs expectations be sufficient to increase GBP/USD’s downtrend?

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