GBP/USD Rangebound at 1.25 Amid Calm Markets
09 Jun 2023
GBP/USD maintains its range around 1.25 considering the calm markets
GBP/USD is maintaining its range play this Friday morning in Europe at about 1.2550. The strong sell-off caused by the US jobs report has left the US Dollar licking its wounds. Markets continue to be cautious as they prepare for week-end flows and position changes.
Early on Friday, GBP/USD gained positive traction and soared to its highest point since May 10 near 1.2570. During European trading hours, the pair continues to consolidate and moves lower. In the absence of fundamental influences, the pair’s movement towards the weekend may be influenced by market sentiment and weekend flows.
After the US Department of Labor’s weekly data showed that Initial Jobless Claims increased to 261,000 from 233,000 in the week ending June 3 to underscore looser labor market conditions, the US Dollar (USD) came under intense selling pressure on Thursday.
As a result, the 10-year US Treasury bond yield partially reversed the gains it saw in the middle of the week after the Bank of Canada unexpectedly decided to boost its policy rate by 25 basis points. The performance of the USD was negatively impacted by these statistics, as shown by the US Dollar Index’s downward shift and loss of more than 0.7%, while Wall Street’s key indices closed sharply higher.
Market investors may decide to take profits after Thursday’s big increase, which would cause GBP/USD to continue its downward reversal.
GBP/USD TECHNICAL ANALYSIS DAILY CHART:
GBP/USD trading in up channel.
GBP/USD is currently trading above all SMA.
RSI is in buying zone which suggests bullishness and Stochastic is suggesting up trend.
GBP/USD resistance is at 1.25606 & its immediate support level is 1.25310
HOW TO TRADE GBP/USD
After retreating, the GBP/USD started climbing once more aggressively. It has broken its previous day’s high and is currently trading in a zone of resistance; if this zone is breached, more upside is expected.