GBP/USD – Risks falling to 1.30 on broad based USD rally
Cable’s failure on Friday at 50-DMA was followed by a sell-off to 1.3129 levels. The move led to inverted hammer formation o the daily chart and also marked a failure to breach symmetrical triangle resistance.
Subsequent, drop below short-term moving averages – 5-MA and 10-MA and bearish 5-MA and 10-MA crossover on daily suggests upticks towards 50-DMA hurdle of 1.3181 could be met with fresh offers. Overall, the spot appears on track to test 1.30 levels.
A pull back to 50-DMA cannot be ruled out in case Friday’s payrolls and wage growth figure is horribly weak, although August payrolls are usually revised higher in the subsequent months, hence negative reaction in the US dollar may not last long.
Subsequent, drop below short-term moving averages – 5-MA and 10-MA and bearish 5-MA and 10-MA crossover on daily suggests upticks towards 50-DMA hurdle of 1.3181 could be met with fresh offers. Overall, the spot appears on track to test 1.30 levels.
A pull back to 50-DMA cannot be ruled out in case Friday’s payrolls and wage growth figure is horribly weak, although August payrolls are usually revised higher in the subsequent months, hence negative reaction in the US dollar may not last long.
