GBPUSD Rally at Risk Ahead of NFP

·    October 3, 2024

·      October 3, 2024

·    October 3, 2024


The GBPUSD rally hangs in the balance as the market tests a critical level ahead of Friday’s non-farm payroll (NFP).

Watch today’s video for my thoughts on where GBPUSD is likely to go next, and get an update on the US Dollar Index (DXY).

GBPUSD is at risk of closing the week below a key level from December 2023.

However, bulls still have 24 hours to change that, including Friday’s NFP numbers.

The level in question is the ascending trend line from the late 2023 highs.

It’s an ascending parallel that mirrors the March 2023 trend line support.

Although GBPUSD chopped around this level in September, the pair never closed a week below it after the late August breakout.

The key takeaway here is, if GBPUSD closes this week below 1.3140, it could signal a fakeout pattern, which would be bearish and point to lower levels.

That said, tomorrow’s NFP volatility could shake things up, so anything is possible.

Meanwhile, the DXY is testing the 102.00 range highs today, a target I mentioned last weekend.

The US dollar only turns decisively bullish with a sustained break back inside the 2023 ascending channel, which comes in at 102.60.

As I’ve mentioned before, 102.60 is major DXY resistance right now.

So, getting too bearish on GBPUSD might be premature unless the DXY reclaims 102.60 on the daily and weekly charts.

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GBPUSD Rally at Risk Ahead of NFP 2

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