GBP/USD Price Forecast: Gathers strength for VCP breakout
The British Pound (GBP) trades marginally lower at around 1.3460 against the US Dollar (USD) during the European trading session on Thursday.
As British Pound (GBP) trades at approximately 1.3460 against the US Dollar (USD) on Thursday, market analysts anticipate a sideways movement in the GBP/USD pair. This forecast is based on the anticipation of U.S. Nonfarm Payrolls (NFP) data, set to be released on Friday. Deutsche Bank economists predict a modest increase in employment growth of +65k, surpassing June's +57k figure.
The unemployment rate is expected to stay at 4.2%, although there is a slight risk of it rising to 4.3% if labor force participation improves after a recent decline. Wage and hours data are anticipated to remain steady, with average hourly earnings increasing by +0.3% month-over-month and average hours worked holding at 34.3 hours.
Investors will closely monitor the NFP data, which will impact expectations for the Federal Reserve's monetary policy. Currently, GBP/USD trades near 1.3460, displaying a slight bullish bias as it remains above the 20-day exponential moving average (EMA) at 1.3404. However, the pair is struggling to break through the downward-sloping Volatility Contraction Pattern (VCP) border at 1.3471.
On the upside, the immediate resistance level is noted at the former trend line break price at 1.3471, with a decisive move above this barrier potentially leading to further upside. The July 15 high at 1.3558 represents a significant hurdle. Conversely, support is seen at the 20-day EMA at 1.3404, followed by the July 28 low at 1.3274.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
