GBPUSD rebound prevails
Gary Christie October 22, 2020 4:50 PM
Despite a strong dollar Thursday, an uptrend looks to be in play: Chart
The US Dollar was bullish against most of its major pairs on Thursday with the exception of the NZD. On the US economic data front, Initial Jobless Claims dropped to 787K for the week ending October 17th (870K expected), from a revised 842K in the week before. Continuing Claims fell to 8,373K for the week ending October 10th (9,625K expected), from a revised 9,397K in the previous week. The Leading Index rose 0.7% on month in September (+0.6% expected), compared to a revised +1.4% in August. Finally, Existing Homes Sales increased to 6.54 million on month in September (6.30 million expected), from a revised 5.98 million in August, a level last reached in mid-2006.
On Friday, Markit's U.S. Manufacturing Purchasing Managers' Index for the October preliminary reading is expected to rise to 53.5 on month, from 53.2 in the September final reading.
The Euro was bearish against most of its major pairs with the exception of the GBP. In Europe, Eurozone's Commission has reported the first release for October indicators on consumer confidence at -15.5 (vs -13.9 expected). separately, Germany's GfK Consumer Confidence Index for November was released at -3.1 (vs -3.0 expected). Distinctly, France's INSEE has reported October indicators on business confidence at 90 (vs 92 expected) and manufacturing confidence at 93 (vs 96 expected).
The Australian dollar was bullish against most of its major pairs with the exception of the NZD and CAD.
The GBP/USD fell 70 pips to 1.3079 in Thursday's trading making the pair one of the largest movers on USD strength however the longer term trend looks bullish. A rising trend line is in play from March lows. Support can be seen at the 1.2845 level. Look for a continuation higher and the uptrend to continue towards Dec highs around the 1.351 level as long as the pair does not break below the 1.2845 support level.
Source: GAIN Capital, TradingView
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 Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.