Thoughts on the GBP/USD market...
GBP bulls, once again, were seen flexing their financial muscle on Wednesday. Up 1.66% on the day, the pair managed to chew through offers around a weekly resistance level plotted at 1.4079 (now acting support). Technically speaking, this move has possibly unlocked the door for the unit to challenge the 2016 yearly opening level at 1.4732.
Looking down on daily structure, the daily channel resistance extended from the high 1.2673 was also taken out amid yesterday’s advance. This has placed a daily resistance area at 1.4393-1.4297 in the spotlight. We believe the market is likely to find active selling here, with it having been a strong demand back in 2016.
Economic data from the UK showed the claimant count rate increased from 2.3% up to 2.4%. The Unemployment rate remained unchanged, as did average earnings. At the time of this release, price was teasing the underside of 1.41, and as far as we can see, was largely ignored.
Market direction:
Despite H4 price fading the H4 mid-level resistance 1.4250 at the moment, further buying up to at least the daily resistance area mentioned above at 1.4393-1.4297 (houses a H4 resistance within at 1.4382) is likely going to be seen according to our technicals.
As of now, though, we do not see much to hang our hat on as far as technical setups go. That is unless you trade round numbers and like the look of buying 1.42 without any confluence other than a rising market?
Data points to consider: US unemployment claims at 1.30pm; US new home sales at 3pm GMT.
Looking down on daily structure, the daily channel resistance extended from the high 1.2673 was also taken out amid yesterday’s advance. This has placed a daily resistance area at 1.4393-1.4297 in the spotlight. We believe the market is likely to find active selling here, with it having been a strong demand back in 2016.
Economic data from the UK showed the claimant count rate increased from 2.3% up to 2.4%. The Unemployment rate remained unchanged, as did average earnings. At the time of this release, price was teasing the underside of 1.41, and as far as we can see, was largely ignored.
Market direction:
Despite H4 price fading the H4 mid-level resistance 1.4250 at the moment, further buying up to at least the daily resistance area mentioned above at 1.4393-1.4297 (houses a H4 resistance within at 1.4382) is likely going to be seen according to our technicals.
As of now, though, we do not see much to hang our hat on as far as technical setups go. That is unless you trade round numbers and like the look of buying 1.42 without any confluence other than a rising market?
Data points to consider: US unemployment claims at 1.30pm; US new home sales at 3pm GMT.
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