Cable Poised for Losing Streak amid US Jobless Claims Data

The Great Britain Pound (GBP) inched lower against the US Dollar (USD) on Friday, decreasing the price of GBPUSD to less than 1.3450 following some key economic events. The technical bias remains bullish because of a higher low in the recent downside move.

GBP/USD Technical Analysis

As of this writing, the pair is being traded near 1.3434. A hurdle may be noted around 1.3655 (a major horizontal resistance zone) ahead of 1.3900(a psychological level) and then 1.3943 (another major resistance area).

On the downside, a support can be noted around 1.3000 (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 Jobless Claims

The number of Americans filing for unemployment benefits fell last week, a government report showed on Thursday. Initial claims for state unemployment benefits declined by 11,000 to a seasonally adjusted 225,000 for the week ended Dec. 9 from an unrevised 236,000 the week before, the Labor Department said. Economists polled by Reuters had forecast claims rising to 239,000 in the latest week. The 4-week moving average was 234,750, a decrease of 6,750 from the previous week’s unrevised average of 241,500.

Trade Idea

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

 

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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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