Daily London Session Watchlist: GBP/USD

Daily London Session Watchlist: GBP/USD

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Asian session traders took cues from their U.S. counterparts and pushed higher-yielding bets higher today.

Can London session traders extend their optimism?

Here are the major headlines from the last couple of hours:

Currency Snapshot

Forex Pairs Price Performance from MarketMilk
Forex Pairs Price Performance from MarketMilk

Fresh Market Headlines & Economic Data:

  • Prices drop for New Zealand’s sheep and beef farmers
  • Australia faces ‘unprecedented’ economic hit from coronavirus: RBA minutes
  • RBA will remove three-year target yield before raising cash rate
  • Minutes: RBA on wait and see mode after recent policy changes
  • Australia ‘disappointed’ by China barley tariffs
  • Japan’s final industrial production data maintains -3.7% reading in February
  • RBNZ doubles down on promise to keep OCR at 0.25% until March
  • RBNZ not expanding quantative easing programme any time soon

Upcoming Potential Catalysts on the Economic Calendar:

  • U.K.’s labor market numbers at 6:00 am GMT
  • Euro Zone’s ZEW economic sentiment at 9:00 am GMT
  • Germany’s ZEW economic sentiment at 9:00 am GMT

What to Watch: GBP/USD

GBP/USD 1-hour Forex Chart
GBP/USD 1-hour Forex Chart

In a few hours the U.K. will print its labor market numbers for the month of April.

Word around is that the jobless rate could jump to 4.4%, while analysts see 150,000 jobless claimants for the month.

As you can see, GBP/USD is trading near a broken channel support AND a trend line resistance on the 1-hour time frame.

If today’s numbers print way weaker than markets are expecting, then we could see GBP/USD complete a break-and-retest setup just under the 1.2250 area.

The pair’s 120-pip daily volatility means that the previous low near 1.2070 is juuuust within reach for the bears.

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Meanwhile, pound bulls might want to wait for a break above the trend line, 100 and 200 SMAs, and the 1.2250 range support if they’re betting on GBP/USD gains.

Just make sure that you’re looking at a legit breakout and not a fakeout if you’re one of them pound bears!

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