Categories: Technical Analysis

GBPUSD ready for fresh yearly high above 1.6920

The British pound traded higher against the US dollar yesterday after the positive manufacturing PMI. The GBPUSD stopped around the 1.6919 level, and moved lower. However, the bearish pressure is less for the pair. So, there are chances that the pair might climb again after a short-term retracement.

Looking at the 4 hour chart of the GBPUSD, there is a solid up-move trend line formed, which has held the downside in the pair a number of times. This trend line might act as a support again moving forward. So, if the pair retraces the recent gains in the short term and moves closer to the highlighted trend line, then we can jump into a buy trade. Remember, this trend line is also coinciding with the 61.8% fib retracement level of the last leg higher.

Initial target should be around the 1.6980 level, and final target could be above the 1.70 level. Stop should be placed below the trend line, as a break could take the pair lower further.

Reviewing yesterday’s events and trades
Yesterday, the market was relatively calm as most of the European market was closed. Later in the NY session, the US initial jobless claims, personal spending data and ISM manufacturing PMI data were published. The US initial jobless claims registered a sharp rise to 344K. On the other hand, the US personal spending and ISM manufacturing PMI came better than expected. The US dollar is trading a touch higher intraday, especially against the Euro and the Japanese yen.

Fundamental Outlook for the day
Today is an important day as the US nonfarm payroll and the unemployment rate will be published later during the NY session. The market expectations are quite high this time with NFP number is expected to come around 210K, and the unemployment rate is expected to fall from 6.7% to 6.6%. If the outcome comes positive, then the US dollar can gain some more ground going into the weekend, else it might drop heavily after the release if the data disappoints.

This analysis is taken from today’s Daily Market Forecast, which also includes trade opportunities on: EURUSD, EURGBP, USDJPY, NZDUSD, USDCAD and SILVER.
Get it HERE: Vladimir’s Markets Forecast

Trade safe friends. Happy trading!

Vladimir Ribakov

Following 11+ years of trading experience, trading my own accounts as well as for hedge funds and brokerages, I have decided to fulfill my destiny and to personally mentor Forex and Commodities traders. When I released the “Broker Nightmare” (software that hides trades from brokers) 8 years ago, I found an overwhelming number of frustrated people who genuinely wanted to learn how to trade the Forex market, but instead found themselves scammed and misled. Over the years I have also release other trading systems based on my trading strategies, and met a lot of people on my worldwide Forex seminars. We’ve formed a close Forex community and we meet once or twice a year in various locations in Europe.