Cable Continuous Winning Streak amid US Job Data

The Great Britain Pound (GBP) inched higher against the US Dollar (USD) on Friday, increasing the price of GBPUSD to more than 1.2950 following some key economic events. The technical bias remains bullish because of a higher low in the recent upside rally.

Technical Analysis

As of this writing, the pair is being traded near 1.2997. A hurdle may be noted around 1.3043 (the high of the last major upside rally) ahead of 1.3047 (another key horizontal resistance) and then 1.3100 (the psychological number).

On the downside, a support can be noted around 1.2700 (a psychological number) ahead of 1.2634 (the low of the last major downside move) and then 1.2500 (the confluence of horizontal support as well as psychological number) as demonstrated in the given above chart. The technical bias shall remain bullish as long as the 1.2700 support area is intact.

US Job Data

The number of Americans filing for unemployment benefits fell more than expected last week, touching its lowest level in nearly five months, suggesting strong job gains that should continue to underpin economic growth.

Initial claims for state unemployment benefits dropped 15,000 to a seasonally adjusted 233,000 for the week ended July 15, the Labor Department said on Thursday. That was the lowest level since February, when claims fell to 227,000, which was the best reading since March 1973. Economists polled by Reuters had forecast claims falling to 245,000. It was the 124th straight week that claims remained below 300,000, a threshold associated with a robust labor market. That is the longest such stretch since 1970, when the labor market was smaller.

Trade Idea

Considering the overall technical and fundamental outlook, buying the pair around current levels may be a good strategy in short to medium term.

 

usmanahmed7290@gmail.com'

Usman Ahmed

Usman Ahmed is an individual forex trader and market analyst. He holds a Masters of Business Administration (MBA) degree. His work includes fundamental and technical reports on various currency pairs, commodity futures and stock markets. His technical analysis features price action strategies.

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