Technical Analysis – GBPUSD turns red after NFP surprise
October 6, 2023 2:27 pm
GBPUSD loses 0.7% after upbeat nonfarm payrolls
Signals mixed; bulls might have a tough task
GBPUSD trimmed earlier gains and turned negative on the day after the US jobs growth beat estimates by a large margin.
Thursday’s support area of 1.2100 is currently buffering downside pressures. If that floor collapses, the price could tumble to 1.2000, where the falling constraining line from November 2021 is placed. A continuation lower could see a test of the 1.1900 number, while a more aggressive decline could meet the 2023 low of 1.1800.
Technically, there is a ray of hope that the bulls may return. The bullish morning star pattern created around the seven-month low of 1.2036 is still intact. Moreover, the RSI is ascending towards its 50 neutral mark, and the Stochastic oscillator has still some distance to go to reach its 80 overbought level. Meanwhile, the MACD is gradually deviating above its red signal line.
Nevertheless, it’s uncertain whether the bulls will surpass the 20-day simple moving average (SMA) at 1.2253. There is another obstacle at 1.2350, which the price must breach in order to challenge the tentative ascending line drawn from mid-July and the 200-day SMA at 1.2430. Then, a clear extension above 1.2500 and the 50-day SMA would brighten the short-term outlook.
All in all, GBPUSD remained above its weekly lows despite the positive surprise in the US jobs data on Friday. The way higher could be rocky, whilst a close below 1.2100 could easily activate fresh selling orders.
GBPUSD loses 0.7% after upbeat nonfarm payrolls
Signals mixed; bulls might have a tough task
GBPUSD trimmed earlier gains and turned negative on the day after the US jobs growth beat estimates by a large margin.
Thursday’s support area of 1.2100 is currently buffering downside pressures. If that floor collapses, the price could tumble to 1.2000, where the falling constraining line from November 2021 is placed. A continuation lower could see a test of the 1.1900 number, while a more aggressive decline could meet the 2023 low of 1.1800.
Technically, there is a ray of hope that the bulls may return. The bullish morning star pattern created around the seven-month low of 1.2036 is still intact. Moreover, the RSI is ascending towards its 50 neutral mark, and the Stochastic oscillator has still some distance to go to reach its 80 overbought level. Meanwhile, the MACD is gradually deviating above its red signal line.
Nevertheless, it’s uncertain whether the bulls will surpass the 20-day simple moving average (SMA) at 1.2253. There is another obstacle at 1.2350, which the price must breach in order to challenge the tentative ascending line drawn from mid-July and the 200-day SMA at 1.2430. Then, a clear extension above 1.2500 and the 50-day SMA would brighten the short-term outlook.
All in all, GBPUSD remained above its weekly lows despite the positive surprise in the US jobs data on Friday. The way higher could be rocky, whilst a close below 1.2100 could easily activate fresh selling orders.
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