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GBP/USD roiled on Tuesday, finding support from 1.2300.
UK labor data came in mixed, flubbing forecasts in both directions.
With low-tier data on the docket for Wednesday, trade headlines will rule the roost.
GBP/USD spun in a circle on Tuesday, falling and then climbing in lockstep with global money flows into and out of the US Dollar. The Pound Sterling saw mixed labor data results from the UK, but the UK’s own labor department takes the numbers with a grain of salt. On the American side, US President Donald Trump brushed off his own campaign trail promises of instituting sweeping day-one tariffs on all of the US’ trading partners, focusing newer, more refined tariff threats on the US’ North American trade partners Canada and Mexico.
Markets have whipsawed as investors race to catch up with the newest headline generator on the block, President Trump. Investors have been betting big that the newly-minted US President wouldn’t impose day-one tariffs as he had long threatened, however a fresh round of updated trade rhetoric is keeping market sentiment tangled in the midrange.
Only low-tier data is on the offering for Wednesday, leaving Cable traders to focus on developing headlines likely to be concentrated during the US trading hours. Pound Sterling traders will be on the lookout for Friday’s S&P Global Purchasing Managers Index (PMI) figures due on both sides of the Atlantic.
GBP/USD price forecast
GBP/USD continues to grind its way into a half-hearted technical recovery, with bidders struggling to lock their grip on the 1.2300 level convincingly. Price action is tilted into the bullish side with technical oscillators pivoting into buy signals, but the pair remains steeply off of recent highs after knocking into a 15-month low last week.
Topside momentum is set to face firm technical barriers at the 50-day Exponential Moving Average (EMA) falling into 1.2500, the same level that the pair’s last major swing low clocked in late November.
GBP/USD daily chart
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