‘I still think that 1.30 is the level that the cable may be aiming for. My bullish outlook on the GBP/USD would become weak if the sellers now manage to reclaim the broken resistance level at 1.2415.’ – Fawad Razaqzada, analyst at Forex.com (based on PoundSterlingLive)
Thursday ended with the Cable falling significantly below the anticipated 1.26 level. The immediate support, namely the weekly PP at 1.2532, was crossed yesterday, which is now acting as the nearest resistance. Today’s GBP/USD driver will be the US NFP data, a strong reading of which is likely to cause the exchange rate to drop lower. The 1.24 level will then be the main target, as a tough demand cluster is located there, which is capable of limiting the losses. On the other hand, disappointments in US fundamentals could help the Sterling erase most of Thursday’s losses, with the resistance around 1.2680 preventing the Pound from climbing further up.
There are 60% of traders holding long positions today (previously 59%), whereas 53% of all pending orders are to sell the British currency.