Two trades to watch: GBP/USD, Nasdaq

GBP/USD holds 1.41 as the UK labour market continues its recovery. The Nasdaq closed at a fresh all time high, US retail sales due later, FOMC begins.

Jobs 2

GBP/USD holds 1.41 as the labour market recovery continues 

The unemployment rate in the 3 months to April ticked lower to 4.7%, down from 4.8%. 

The claimant count declined by 92.6k as people came off furlough and re-entered the work force. 

Average earnings jumped by 5.6%, up from 4.3%. 

UK PM Boris Johnson delayed the final reopening of the UK economy by 4 weeks. 

BoE Andrew Bailey is due to speak at 12:15 GMT 

The US Dollar index is edging a few pips lower as investors remain fixed on tomorrow’s Federal Reserve monetary policy announcement. 

US retail sales are expected to show -0.8% MoM down from 0% 

A guide to GBP

Where next for GBP/USD? 

After hitting 1.4250 on 31st May, GBP/USD has slipped 150 points. The pair found support in the previous session on its ascending trendline dating back to mid April.  

The pair is holding above 1.41 however the bearish MACD is keeping sellers hopeful. 

Any move lower would need to break below the ascending trend line support at 1.4070, also yesterday’s low. Taking out that technical barrier could see GBP/USD test 1.40, the 50 sma and round number. 

Should the pair maintain levels above last week’s low then a rebound towards 1.42 could be possible. If the June high is taken out then GBP/USD could make a move towards the year to date high of 1.4250.  


Nasdaq hit fresh record highs, retail sales in focus, FOMC begins 

The Nasdaq closed at record highs, boosted by big tech names such as Apple, Facebook and Amazon.  

Bond yields also remain depressed amid expectations that inflation will be transitory and the Fed won’t be forced to slam on the breaks. 

There is only one show in town this week and that’s June’s FOMC which kicks off today with the announcement due tomorrow. 

Data wise US retail sales are expected to show -0.8% after a 0% 

Where next for the Nasdaq? 

The Nasdaq broke above 14070 resistance, the high April 29, to close at an all time high in the previous session.  

Taking out this level boosts the chances of further upside and the index has continued to push higher overnight reaching 14162. 

The RSI is supportive of further upside, whilst it remains out of overbought conditions. 

It would rake a move below 14070 to negate the near term uptrend. A move below 13725 the 50 sma could see the sellers gain traction. 

Learn more about trading indices

How to trade with

Follow these easy steps to start trading with today:

  1. Open a account, or log-in if you’re already a customer.
  2. Search for the market you want to trade in our award-winning platform.
  3. Choose your position and size, and your stop and limit levels.
  4. Place the trade.

More from Trade Ideas

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

Open an Account