money GBP/USD Daily Forecast – Resistance At 1.3110 Stays Strong
GBP/USD Video 11.08.20.
UK Claimant Count Change Report Shows That Job Market Recovery Stalled In July
GBP/USD trades near 1.3100 while the U.S. dollar is flat against a broad basket of currencies as traders wait for further developments in negotiations between U.S. Republicans and Democrats.
The talks about the new coronavirus aid package deal have stalled but both sides have indicated that they were ready to resume negotiations. It looks like the market consensus is that the deal will be reached in some form so the U.S. dollar continues its attempts to rebound.
The U.S. Dollar Index is trying to settle above the nearest resistance level at 93.50. In case this attempt is successful, it will head towards the test of the major resistance level at the 20 EMA at 94.15. Such a move would be bearish for GBP/USD.
The UK has just provided Claimant Count Change report for July which showed that the number of workers who requested unemployment benefits has increased by 94,400. The analyst consensus called for an increase of 10,000.
This is bad news for the British economy as the higher Claimant Count Change shows that the job market struggled to rebound after the acute phase of coronavirus crisis.
Meanwhile, Unemployment Rate for June was better than expected at 3.9% compared to analyst consensus of 4.2%. Most likely, the market will ignore the data for June and focus on the developments that took place in July.
Technical Analysis
GBP/USD did not manage to settle above the nearest resistance at 1.3110 and continues to trade in a range between the support at 1.3010 and the resitance at 1.3110.
Most likely, GBP/USD will need additional catalysts to get out of this range. In case GBP/USD settles below the support at 1.3010, it will head towards the next support at the recent lows at 1.2980.
A move below the support level at 1.2980 will open the way to the test of the 20 EMA level at 1.2960.
On the upside, GBP/USD needs to get above the resistance at 1.3110 to gain more upside momentum and get to the test of the next resistance level near the recent highs at 1.3200.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
More From FXEMPIRE:
European Equities: Futures Point to the Green ahead of Economic Sentiment Figures
Gold Price Futures (GC) Technical Analysis – Weakens Under $2008.40, Strengthens Over $2020.80
Gold Prices Supported on High Geopolitical Risks, Negative Real Yields
Crude Oil Price Update – Strengthens Over $42.29, Weakens Under $41.72
