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GBP/USD might zoom towards 1.5000 on a strong UK employment data – FXStreet
FXStreet (Barcelona) - Omkar Godbole, FXStreet Editor and Analyst, believes that further moves in GBP/USD will remain dependent upon today’s UK data, expecting a strong employment print to push the pair higher towards 1.5000 levels.
Key Quotes
“On the charts, we see the pair has breached a minor falling trend line in the previous session. The four-day rally has also pushed the daily RSI above 50.00 levels. Given the sharp gains, the pair is showing signs of profit booking, although immediate losses appear capped at the trend line support at 1.4906.”
“The hourly RSI has turned lower from the overbought zone, which could see the pair re-test 1.4906 levels. In case, the pair manages to sustain above the same, we are likely to see another attempt being made at 1.5 (50-DMA) levels.”
“At the moment, the pair is trading just below 1.4939 (38.2% Fib retracement of 1.5550-1.4564). Even in the previous session, the pair failed to sustain gains above the same. Thus, a break above 1.4939 could trigger fresh demand for Pounds. However, the move towards 1.5 is contingent to some extent on the nature of UK data. In case the pair drops on weak data, then we are likely to see a beginning of a fresh move towards 1.45 levels in the days ahead.”