Short traders in the EUR/USD and DAX were able to catch some good profits on Wednesday.
The GBP/USD, however, lacked behind and refrained from a break below its 1.38-support, at least until now.
Let’s take a brief look at the technical picture:
Looking at larger time frames (weekly chart) we see that the latest bearish move towards 1.1840 has sent the pair in oversold territory, increasing the chances of bullish pullbacks. However, before we shift our focus to potential pullbacks towards 1.20, we brace for a steeper decline towards at least 1.18 and possibly even 1.1750 until the release of tomorrow’s U.S. payrolls report.
The cable still trades around the 1.38-mark and if that level finally breaks, which means a break below 1.3785, we could see a fall towards 1.37. A further break below 1.3665 could even increase selling pressure towards 1.35 but for such steep fall we must see a big upside surprise in the payrolls data tomorrow.
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