GBP/USD – Fate of corrective rally dependent on NFP data

8 lug 2016

Resistance – 1.30, 1.3047, 1.3087-1.3119

Support – 1.2880, 1.2864, 1.2789

• Despite pair’s retreat from the high of 1.3046 the odds of the corrective move remain, since the pair is trading well above the latest cyclical low of 1.2789 and has a bullish price-RSI divergence on the 4-hour chart.
  

• Hence, another attempt at 1.30 could be made ahead of the non-farm payrolls report.
  

• On a weak data, the pair could test falling channel resistance seen at around 1.3087. A 4-hour closing above the same would indicate a short-term bottom is in place and the pair is on a more sustained path of recovery.
  

• On the other hand, a super strong data (strong NFP + strong wage growth numbers) could yield a re-test of 1.2789 levels.