FXOpen
The Great Britain Pound (GBP) extended upside movement against the US Dollar (USD) on Friday, increasing the price of cable to more than 1.2250 following the release of initial jobless claims news from the United States. The technical bias remains bullish in short term because of a higher high in the recent upside rally.
Technical Analysis
As of this writing, the pair is being traded around 1.2280. A hurdle may be seen near 1.2328, the horizontal resistance area ahead of 1.2672, another major horizontal resistance and then 1.2778, the swing high of the last major upside rally.
On the downside, the pair is likely to find a support near 1.2200, the psychological number ahead of 1.2111, the horizontal support area and then 1.1916, the swing low of the last major downside move as demonstrated in the given above daily chart. The technical bias shall remain bullish as long as the 1.2082 support area is intact.
US Job Data
The US initial jobless claims came in right on expectations at 265K. This was down 10K from last week. The four-week average fell slightly to 263K from 263.75K.
US continuing claims rose to 2102K versus 2027K estimate. Last week continuing claims were revised to 2039K from 2036K.
Trade Idea
Considering the overall technical and fundamental outlook, buying the pair around current levels appears to be a good strategy in short to medium term. Alternatively, selling the pair near 1.2750 could also be a good option. It is always recommended to place tight stop loss and take profit levels for every position.
Trade global forex with the Innovative Broker of 2022*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about trading forex with FXOpen.
* FXOpen International, Innovative Broker of 2022, according to the IAFT
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Latest from Forex Analysis
Latest articles
Weekly Market Wrap With Gary Thomson: AUD/JPY, RATE HIKES, S&P 500, WTI Oil
Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of FXOpen UK, as he breaks down the most significant news reports and shares his expert insights. AUD/JPY: Rate Falls
Fixed Exchange Rates: Benefits and Limitations
Fixed exchange rates, a cornerstone of international finance, play a pivotal role in shaping global commerce and investment landscapes. This article delves into their intricacies, exploring the historical evolution, practical understanding, and the balance of benefits and challenges they present.
Alternative Investment Options
Traders and investors are increasingly turning to alternative investment options to diversify their portfolios and seek new avenues for potential returns. In this FXOpen article, we discuss alternative investments, examining the types and explaining the reasons why they are gaining