Two trades to watch: GBP/USD eyes 1.33, Adidas extends gains

GBP/USD comes under pressure as UK unemployment rises & claimant count surges. Adidas rides higher after potential Reebok sale announcement.

Charts (1)

GBP/USD: Struggling After Weak Jobs Data

• UK unemployment Oct 4.9% vs 4.8% Sept
• Claimant count surges +64.3k 
• US Dollar firms amid surging covid number & tighter restrictions
• Brexit headlines will be watched closely

is wobbling in early trade. It remains above the ascending trendline that dates back to early November, which offers support at 1.3317. However, the pair eased back from a strong push higher to 1.3450 in the previous session warranting caution for the bulls. 

$1.33 horizontal support and $1.3250 (200 SMA 4H chart) have offered strong support since late November attracting dip buyers and could continue to do so. A break-through support at 1.32 could open the door to a deeper sell off to 1.3165/7 and 1.31.

On the flip side a move above 1.3360 (50 & 100 4H chart) could confirm the bullish trend ahead of resistance at 1.34 round number and 1.3450 yesterday’s swing high and 1.35.
Click here to learn more about trading currencies.

Adidas' Bullish Run Continues

Adidas earmarks underperforming Reebok for potential sale
• Acquired in 2005 for $3.8 billion
• Final decision due March ’21 with official strategy presentation
• Share price rallied on announcement yesterday

Adidas has rallied hard from its mid-March low rising over 72%. It now trades flat on the year. It trades above its ascending trend line dating back to May and above its 50, 100 & 200 sma on the daily chart. All bullish signals suggesting there could be more upside. 

Immediate resistance can be seen at 290.00, December high. A break-through here could see 300.00 round number and 306.00 draw into focus.

On the downside, support from 50 sma can be seen at 276.00 prior to 270.00 where ascending trend line & 100 sma converge.  A break-through here could negate the current uptrend and open the door to 250.00 prior to 245.00.

Click here to learn more about trading shares

Click here to learn more about trading shares

More from GBP

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.