Buy dips in GBPUSD as buyers in control

The British pound is not willing to give up easily, as it managed to gain buyers against the US dollar around the 1.6100 level. The GBPUSD pair is now trading higher and it looks like that it might close the opening week gap which is around the 1.6300-20 area. So, I think buying dips in the GBPUSD pair might be a good option in the short term.

There was a monster resistance around the 1.6150 level on the one-hour chart of the GBPUSD pair, which was broken earlier during this week. The mentioned resistance level might turn as a support and buyers might emerge if the pair drops around the highlighted area in the chart. So, if the pair corrects lower and trades a bit closer to the mentioned levels, then we can enter into a buy trade.

Initial target should be around the 1.6280 level, and final target could be around the 1.6320 level. Stop should be placed below the 1.6100 level.

Reviewing yesterday’s events and trades
Yesterday, the market theme was the same, as the Euro and the British pound managed to consolidate and trade higher against the US dollar. On the other hand, the Australian and the New Zealand dollar continued their decline against the US dollar. The RBNZ rate statement was comparatively bearish, which is weighing on the NZDUSD pair in the short term. Moreover, the Aussie jobs report was also mixed, and failed to help the Australian dollar. Moreover, the Chinese CPI figures too disappointed the market and dented the risk sentiment.

Fundamental Outlook for the day
Today, the US initial jobless claims and the federal budget balance data will be released during the NY session. The market is expecting improvement this time around, and if the outcome disappoints, then it might give a reason for the US dollar sellers to take it lower. Moreover, the EBC President Mario Draghi is also scheduled to speak. Let’s see what he has to say. It would be interesting to see how the Euro traders react around that time. The New Zealand business NZ PMI data will be released during the Asian session, which can cause some moves in the NZDUSD pair.

This analysis is taken from today’s Daily Market Forecast, which also includes trade opportunities on: GBPUSD, GBPCHF, AUDCAD, USDCAD, USDJPY, CADJPY, AUDJPY and NZDUSD.
Get it HERE: Vladimir’s Markets Forecast

Trade safe friends. Happy trading!