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MTrading Team • 2023-08-15

GBPUSD closing in key support ahead of UK employment data

GBPUSD closing in key support ahead of UK employment data

GBPUSD remains on the back foot as the Cable bears attack the bottom line of a six-week-old bullish triangle after staying successfully beneath an ascending support line from early March, now resistance around 1.2830. That said, the bearish MACD signals keep the Cable sellers hopeful. However, the below 50.0 conditions of the RSI (14) line join a convergence of the 100-DMA and bottom of the stated triangle, around 1.2610, quickly followed by the 1.2600 round figure, to challenge the Pound Sterling’s downside. In a case where the quote remains bearish past 1.2600, the odds of witnessing a slump toward the 200-DMA support of around 1.2350 can’t be ruled out.

On the contrary, an upside break of the stated triangle confirms the GBPUSD pair’s bullish breakout and theoretically suggests a run-up towards 1.3700. However, the multi-day-old support-turned-resistance around 1.2830 and the late July swing high around the 1.3000 psychological magnet can test the Pound Sterling bulls. Also acting as an upside hurdle is the yearly high of around 1.3145.

Overall, GBPUSD bears approach the short-term key support confluence surrounding the 1.2600 round figure as the UK employment data looms. It’s worth noting, however, that the downbeat prints of the British jobs report may allow the bears to keep the reins and prod the 200-DMA support while the road towards the north appears bumpy in case the scheduled data offers a positive surprise.

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