GBPUSD struggles to break key resistance
Gary Christie October 1, 2020 4:47 PM
The pair remains range-bound with a bearish bias: Chart
The US Dollar was bearish against most of its major pairs on Thursday with the exception of the GBP and JPY. On the US economic data front, Initial Jobless Claims fell to 837K for the week ending September 26th (850K expected), from a revised 873K in the week before. Continuing Claims dropped to 11,767K for the week ending September 19th (12,200K expected), from a revised 12,747K in the prior week. Personal Income slipped 2.7% on month in August (-2.5% expected), compared to a revised +0.5% in July. Personal Spending rose 1.0% on month in August (+0.8% expected), compared to a revised +1.5% in July. Markit's US Manufacturing Purchasing Managers' Index unexpectedly declined to 53.2 on month in the September final reading (53.5 expected), from 53.5 in the September preliminary reading. Finally, Construction Spending increased 1.4% on month in August (+0.7% expected), compared to a revised +0.7% in July.
On Friday, Change in Nonfarm Payrolls for September are expected to drop to 872K on month, from 1,371K in August. The Unemployment Rate for September is anticipated to shrink to 8.2% on month, from 8.4% in August. The University of Michigan's Consumer Sentiment Index for the September final reading is expected to rise to 79.0 on month, from 78.9 in the September preliminary reading. Factory Orders for August are expected to increase 0.9% on month, compared to +6.4% in July. Finally, Durable Goods Orders for the August final reading are expected to increase 0.4% on month, in line with the August preliminary reading.
The Euro was mixed against most of its major pairs. In Europe, the European Commission has confirmed starting the process to take the U.K. into court over its Internal Market Bill. The Markit Germany Manufacturing Purchasing Managers' Index (PMI) for September was released at 56.4 (vs 56.6 expected). The Markit European Manufacturing PMI for September was published at 53.7, as expected. The August Unemployment rate was at 8.1%, as expected. The Markit U.K. Manufacturing PMI for September was released at 54.1, vs 54.3 expected.
The Australian dollar was bullish against most of its major pairs with the exception of the NZD.
One of the largest losers on the day was the GBP/USD which declined 30 pips to 1.289 in Thursday's trading. The pair can't seem to break above the 1.2985 level (Green Line). Support remains at 1.2675 with a target lower at 1.251 as long as resistance is not broken.
Source: GAIN Capital, TradingView
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