GBP/USD Price Hit 1.1400 as USD Bears Picked Pace Before US NFP

GBP/USD Price Hit 1.1400 as USD Bears Picked Pace Before US NFP

  • The GBP/USD pair reached strong upside obstacles.
  • False breakout may announce a new sell-off.
  • Staying near the upside line signals strong upside pressure.

The GBP/USD price extended its upwards movement as the US dollar slipped further in its downside corrective phase. The pair is trading at 1.1343 at the time of writing after hitting a high at 1.1414.

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Fundamentally, the USD took a hit from the US economic figures yesterday. The ISM Manufacturing PMI came in at 50.9 points, far below 52.5, signaling a slowdown in expansion.

In addition, Construction Spending, ISM Manufacturing Prices, and Wards Total Vehicle Sales also came in worse than expected. On the other hand, the UK Final Manufacturing PMI dropped from 48.5 to 48.4 points.

Today, the JOLTS Job Openings indicator is seen as high-impact and is expected to drop from 11.24M to 11.07M. Moreover, the Factory Orders report a 0.0% growth in August versus the 1.0% drop in the previous reporting period.

Tomorrow, ADP Non-Farm Employment Change and the ISM Services PMI will also represent high-impact events.

Dollar Index price technical analysis: Corrective phase

GBP/USD price As you can see on the hourly chart, the DYX tested the broken ascending trendline signaling more declines. It has registered a new lower low, activating a deeper drop. The bias remains bearish as long as it stays under the near-term downtrend line. The next downside target is represented by the S1 (110.90). A deeper drop should weaken the greenback.

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GBP/USD price technical analysis: Upside pressure

US dollar index price

The GBP/USD pair technically continues to challenge the channel’s upside line, representing an upside obstacle. Now, it has reached the downtrend line and the 1.1400 resistance levels. Staying near the channel’s upside line indicates strong upside pressure. A valid breakout through these upside obstacles may signal further growth towards the 61.8% (1.1552) resistance level.

On the other hand, registering false breakouts above these resistance levels signal that the swing higher ended and that sellers could take the lead again.

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Olimpiu Tuns

Olimpiu Tuns

Olimpiu Tuns graduated with a Master in Business Administration and is a seasoned Market Analyst / Trader / Trainer with 10 years of experience in the financial markets having expertise in Forex, Commodities, Index, Cryptocurrencies, and Stocks. He worked as a Market Analyst for three major brokerage companies, as a prop trader, and as a contributor/content creator for news portals and educational platforms.