GBPUSD remains choppy with a bearish bias
Gary Christie October 16, 2020 7:36 AM
A break of the 20-day MA may bring more downside momentum.
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
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