GBPUSD Daily Forecast May 08 2018

GBPUSD: Recovers With Caution!

Recommendations: Long positions above 1.3544 with 1.3600/1.3630 as next targets.

Alternative scenario: The downside breakout of 1.3544 will call for a slide to 1.3515/1.3485 levels.

Description: As long as 1.3544 support holds on a 4-hour closing basis, the GBPUSD remains bullish in the short term forecast with a risk to the 1.3600 levels, a halt is likely and it may turn lower to test 1.3575/1.3544 levels before breaking above 1.3600 levels, however; above 1.3600 will aim the 1.3630 levels, further upside, resistance comes at the 1.3665 levels. On the downside, a 4-hour closing below 1.3544 will reverse risk to the downside to the 1.3515/1.3485 levels, below 1.3485 will open 1.3400 levels.

Key data events which may affect EURUSD pair today:

Fed Chair Jerome Powell speaks at an event in Zurich, Switzerland at 07:15 GMT.