GBPUSD remains choppy with a bearish bias

A break of the 20-day MA may bring more downside momentum.

Charts (2)

The US Dollar was bullish against all of its major pairs on Thursday. On the US economic data front, the Empire Manufacturing index dropped to 10.5 on month in October (14.0 expected), from 17.0 in September. Initial Jobless Claims unexpectedly increased to 898K for the week ending October 10th (825K expected), from a revised 845K in the week before. Finally, Continuing Claims declined to 10,018K for the week ending October 3rd (10,550K expected), from a revised 11,183K in the previous week.

On Friday, Retail Sales Advance for September is expected to rise 0.8% on month, compared to +0.6% in August. Industrial Production for September is expected to increase 0.6% on month, compared to +0.4% in August. Finally, the University of Michigan's Consumer Sentiment Index for the October preliminary reading is anticipated to advance to 80.5 on month, from 80.4 in the September final reading.           

The Euro was bullish against most of its major pairs with the exception of the CHF, JPY and USD. In Europe, France's INSEE has posted final readings of September CPI at +0.0% (vs +0.1% on year expected).

The Australian dollar was bearish against all of its major pairs.

Looking at the most active pairs, the GBP/USD had the largest move after dropping 115pips to 1.2897. Key resistance remains at the 1.3085 level. The bias remains bearish on a daily chart as the pair failed to gain momentum after breaking above its 50-day moving average on Monday. Key support rests at 1.2675 with main target of 1.251 on the downside. 

Source: GAIN Capital, TradingView

Happy Trading

More from Forex

From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.