Yesterday strong UK inflation figures could not be able to help GBPUSD to break the resistance at 1.2950-1.2990. Today the jobs data showed weaker than expected figures but the unemployment rate tick down to 4.6% which is the lowest level over four decades. But at current levels it looks like GBPUSD is overbought as RSI shows and showing signs of exhaustion which clearly indicates that it's time for a bigger correction. The flash crash low shows that the pair has made a longer term bottom somewhere between 1.15-1.20 and is reluctant to make another low below that level. Overall GBPUSD is in a bullish recovery and we will see higher levels again in the long-term. But for short-term GBPUSD is looking for a pullback towards 1.2750-1.2780 where the support lies. Aggressive traders can open their SHORT positions from current levels with the stop loss at 1.30200 and target should be 1.2780. Whereas conservative traders can wait for a pullback to enter LONG positions at 1.2780 with stop loss at 1.2700, the first target is at 1.30500 and the second target is at 1.3200.
If 1.2700-1.2730 breaks then we might expect further correction towards 1.2500-1.2550 where the longer-term support lies as mentioned in the chart and that can provide more valid BUY entry for conservative traders.
Having that in mind I wish you good luck in your trading today.
If 1.2700-1.2730 breaks then we might expect further correction towards 1.2500-1.2550 where the longer-term support lies as mentioned in the chart and that can provide more valid BUY entry for conservative traders.
Having that in mind I wish you good luck in your trading today.