Technical Bias: Bearish
Key Takeaway:
- Cable holds off key trendline
- US Nonfarm Payrolls is due today in Mid US Session
- March 18 candle forms inside bar breakout setup
The Great Britain Pound (GBP) extended upside movement against the US Dollar (USD) on Friday, increasing the price of GBPUSD to more than 1.4800 ahead of the US Nonfarm Payrolls news which is due today during the mid US session. Technical bias remains bearish due to a Lower Low in the recent downside move.
Technical Analysis
As of this writing, the pair is being traded around 1.4818. A support can be seen near 1.4795-4800, the trendline support as well as psychological number ahead of 1.4634, the low of the giant bullish candle which appeared last month.
On the upside, the pair is expected to face a hurdle near 1.4993-5000, the high of the bearish pin bar as well as psychological number ahead of 1.5163, the high of March 18 as demonstrated in the above chart. A breakout through the March 18 candle will determine the long term direction of cable.
Nonfarm Payrolls
The nonfarm payrolls in the United States remained 244K in March as compared to 295K in the month before, the average forecast of different economists says. Generally speaking, higher nonfarm payrolls are considered positive for the economy thus a better than expected actual outcome will be seen as bearish for cable and vice versa.
Trade Idea
Considering the overall technical and fundamental outlook, buying or selling cable on the emergence of a pin bar or engulfing candle on 15-minute timeframe following the release of NFP appears to be a good strategy in short to medium term.
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