GBP/USD – Cable Set to Consolidate Ahead of Non-Farm Payroll
|S1: $1.3352||R1: $1.3454|
|S2: $1.3340||R2: $1.3470|
|S3: $1.3220||R3: $1.3488|
An increase in the ISM Manufacturing PMI in the US last night added selling pressure to Cable, which is fast approaching the key support zone at 1.3220. With US news dominating the latter part of the week, we would expect the GBPUSD to consolidate at this level in the coming days while traders wait for the Non-Farm Payroll numbers later in the week to help determine the next direction.
The bottom of the 4-hour channel that has formed will soon intersect the key support zone at 1.3220, which should provide short-term support for Cable. The 1.3220 level is a role reversal zone from the start of August this year, and these zones rarely fail on the first attempt without a significant news result pushing price through.
Traders should look out for the British Construction PMI data tonight, followed by the Services PMI data tomorrow night. News out of the US will dominate the end of the week with Fed Chair Yellen speaking on Thursday night, US Unemployment Claims and the Non-Farm Employment Change on Friday night.