GBPUSD Daily Forecast Dec 07 2018

Pound - dollar - 689875

GBPUSD: Remains Vulnerable To The Downside…

As long as 1.2822 resistance holds on a daily closing basis, the GBPUSD remains neutral with risk to the downside. Support comes at 1.2706 level. A daily closing below that level is needed to restore the downside momentum. If seen it will open 1.2615 level, further down, support comes at 1.2480 level ahead of 1.2377 level.

On the upside, immediate resistance comes at 1.2822 level. Above that level extends the corrective recovery to 1.2963 level where rejection is very likely. However; a clear break above 1.2963 will turn the focus on 1.3054 level, further upside, resistance comes at 1.3129 level.

Conclusion: The GBPUSD remains exposed to the downside below 1.2822 level.

Support:1.2706, 1.2615, 1.2480, 1.2377

Resistance: 1.2822, 1.2963, 1.3054, 1.3129

blankKey data/events which may affect GBPUSD today:

The U.S will report on Nonfarm Payrolls for Nov at 13:30 GMT. The forecast is to decline 200K, from 250K a month earlier. Above forecast will support the U.S dollar. Below-forecast is negative for the USD.

The U.S will also report on the Unemployment Rate for Nov at 13:30 GMT. The forecast is to remains the same as the previous month 3.7%. Below-forecast will support the U.S dollar. Above forecast is negative for the USD.

How both reports (Nonfarm Payrolls & Unemployment Rate) will affect the market?!

Scenario # 1: If both reports are positive. The GBPUSD will fall to 1.2706 level, a cut through support is very likely if seen, it will aim 1.2615 level. Expected range (1.2615:1.2822)…

Scenario # 2: If both reports are negative, The GBPUSD will continue recovering, the pair will challenge the 1.2822 level. A break is not easy at all but also not impossible. Above 1.2822 will increase the risk for 1.2926/1.2963 levels…

Scenario # 3: One report is positive and the other is negative. A sideways move is expected within 1.2706/1.2822 range.