GBPUSD: Recovers, Tests Trendline Resistance…
As long as 1.2950 support holds on a daily closing basis, the GBPUSD remains in a recovery mode. Resistance comes at 1.1295 level. A halt is likely, but a break will turn outlook bullish towards 1.3088 level ahead of 1.3130 level. A further upside, resistance comes at 1.3222 level.
On the downside, support comes at 1.2950 level with a cut below here opening the way to 1.2870 level, next support comes at 1.2775 level, below that level will restore the downside momentum and turn the focus on 1.2700/1.2625 level.
Conclusion: The GBPUSD see recovery threats above 1.2775/1.2870 level, above 1.2995 will turn outlook bullish to 1.3088/1.3130 level, below 1.2870 would weaken the recent recovery. Below 1.2775 will restore the downside momentum.
Support :1.2950, 1.2870, 1.2775, 1.2700
Resistance: 1.2995, 1.3088, 1.3130, 1.3222
Key data/events which may affect GBPUSD today:
1. The U.S will report on Nonfarm Payrolls for Oct at 12:30 GMT. The forecast is to jump to 191K, from 134K a month earlier. Above forecast will support the U.S dollar.
2. The U.S will also report on the Unemployment Rate for Oct at 12:30 GMT The forecast is to inch up to 3.8%, from 3.7% in the preceding month. Below-forecast will support the U.S dollar. Above forecast us 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 1.2950/1.2870 level.
Scenario # 2: If both reports are negative, The GBPUSD will continue rising to 1.3088/1.3130 levels.
Scenario # 3: One report is positive and the other is negative. The GBPUSD will move sideways, expected range: 1.2870/1.3088.