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Market View

GBPUSD reaches one target after the other

Wednesday, August 9, 2017 11:48 AM GMT

Yesterday, we witnessed a surprise price action after JOLTS Job Openings announcement. This has never happened for years. US dollar gained ground against all majors even though most of pairs trimmed their losses later. As regards GBPUSD, The pressure remains on the downside and puts on a series of lower lows and lower highs. It is currently recovering after reaching Fibonacci extension’s targets (1.301 and 1.296) (read post). On daily, we had a bearish moving average cross (5 & 21 EMA) that confirms the negative bias. Bears may find selling setups if price reached at 5 or 21 EMA. The rising wedge’s target remains open (1.29). Heading to hourly timeframe, the pair is forming a lower Swing High (S2). If there is a valid close above this then we may have an ST uptrend momentum. However, the price needs to close above the Swing High (S1) if the bulls want to negate the bearish intraday outlook.

Today’s agenda includes UK Inflation Report Hearings, US Unit Labor Costs (Q2) (Previous: 2.2%, Forecast: 1.2%), US Nonfarm Productivity (Q2) (Previous: 0.0%, Forecast: 0.7%). Traders should be cautious as we are expecting volatile action soon.




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