GBP/USD dropped after registering only a false breakout above the 1.3598 static resistance and after its failure to stabilize above the 61.8% retracement level. As you already know, the pair rallied on Friday after the Non-Farm Payrolls indicator was reported at 199K far below 426K forecasts.
Today, the currency pair retreated only because the Dollar Index has managed to rebound. The DXY’s growth was only a temporary one, the index has erased some of its today’s gains weakening the USD. Fundamentally, the Final Wholesale Inventories rose by 1.4% versus 1.2% expected which was bad for the USD.
GBP/USD Technical Analysis!
GBP/USD dropped and registered a false breakdown below the uptrend line, under the weekly pivot point of 1.3538, and through the1.3550 static support signaling that the buyers are strong around these immediate downside obstacles.
As long as it stays above the uptrend line, GBP/USD could still resume its upwards movement. An upside continuation could be confirmed by a valid breakout above the 1.3598 static resistance.
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