GBP/USD – Is Cable Ready for a Bounce?
| Support | Resistance |
|---|---|
| S1: $1.3352 | R1: $1.3454 |
| S2: $1.3340 | R2: $1.3470 |
| S3: $1.3220 | R3: $1.3488 |
Essential Insights
US Non-Farm Payroll numbers will dominate the news on Friday which will help determine cables next direction and potentially the next big movement.
We will look to see the key support at 1.3220 holds, as a possible double bottom formation is occurring on the 4-hour chart signalling a chance of a bullish bounce if it breaks past the 1.3300 zone.
Technicals
The key support zone at 1.3220 has been hit this week with a potential double bottom forming at this level ahead of major news.
We will look for a break of the 1.3300 area to signal if a double bottom pattern formation has occurred, as well as a possible cross of the stochastic indicator above the oversold line as a signal that a bullish movement is happening.
Fundamentals
Traders should look out for the US initial Unemployment Claims tonight which may shed some light on what to expect ahead of tomorrow’s news, as well as the FOMC speakers.
News out of the US will dominate Friday, with the Non-Farm Employment Change potentially giving traders a clearer direction for cable into trading next week.
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