Skip to Content
News & Analysis at your fingertips.
Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
GBP/USD Rebound Vulnerable to Weak U.K. Job/Wage Growth Report

GBP/USD Rebound Vulnerable to Weak U.K. Job/Wage Growth Report

Talking Points:

- GBP/USD Outlook Hinges on U.K. Jobless Claims, Wage Growth Report.

- AUD/USD Former Support Zones in Focus as Pair Mounts Larger Rebound.

- USDOLLAR Threatens Bullish Momentum- Fed’s Stanley Fischer Warns of Low Inflation.

For more updates, sign up for David's e-mail distribution list.


GBP/USD Daily Chart

Chart - Created Using FXCM Marketscope 2.0

  • GBP/USD may continue to track sideways in the days ahead amid the ongoing closes above near-term support around 1.5450 (61.8% retracement) to 1.5460 (23.6% expansion); will keep a close eye on the key data prints amid the tightening race between the Bank of England (BoE) and the Federal Reserve to normalize monetary policy.
  • Despite expectations for another 1.0K rise in U.K. Jobless Claims, sticky/strong wage growth figures may heighten the appeal of the British Pound as it puts increased pressure on the BoE to lift the benchmark interest rate off of the record-low.
  • Nevertheless, the DailyFX Speculative Sentiment Index (SSI) shows retail crowd remains net-long GBP/USD since July 1, but the ratio remains off of recent extremes as it sits at +1.35 with 58% of traders long.


AUD/USD Daily Chart
  • Long-term outlook for AUD/USD remains bearish amid the divergence in the policy outlook, but may see a larger rebound in the days ahead as the RSI carves a near-term upward trend.
  • As the Reserve Bank of Australia (RBA) highlights an improved outlook for the labor market, a pickup in the region’s Wage Price Index may further reduce speculation for lower borrowing-costs as the central bank endorses a wait-and-see approach.
  • Will watch former support zones for new resistance, with the first region of interest coming in around 0.7490 (61.8% expansion), following by 0.7570 (50% expansion) to 0.7590 (38.2% retracement).

Join DailyFX on Demand for Real-Time SSI Updates Across the Majors!

Read More:

Price & Time: USD Continues to Frustrate

AUDUSD & NZDUSD Behavior Changes; Pounce on the Bounce?

USDOLLAR(Ticker: USDollar):

IndexLastHighLowDaily Change (%)Daily Range (% of ATR)
DJ-FXCM Dollar Index12007.8312052.3412003.4-0.06100.53%
USDOLLAR Daily Chart

Chart - Created Using FXCM Marketscope 2.0

  • Ongoing failed attempts to close above 12,049 (78.6% retracement) raises the risk for a larger pullback in the Dow Jones-FXCM U.S. Dollar especially as the RSI threatens the bullish momentum carried over from May.
  • Even though the Fed sees the U.S. economy approaching full-employment, the disinflationary environment may become a growing concern for the central bank and spur a further delay of the normalization cycle as the renewed weakness in oil/energy prices dampens the outlook for price growth.
  • As the USDOLLAR comes off of near-term resistance, the Fibonacci overlap around 11,951 (38.2% expansion) to 11,965 (23.6% retracement) remains in focus as the greenback searches for support.

Join DailyFX on Demand for Real-Time SSI Updates!

--- Written by David Song, Currency Analyst

To contact David, e-mail Follow me on Twitter at @DavidJSong.

To be added to David's e-mail distribution list, please follow this link.

Trade Alongsidethe DailyFX Team on DailyFX on Demand

Looking to use the DailyFX Trade Signals LIVE? Check out Mirror Trader.

New to FX? Watch this Video

Join us to discuss the outlook for the major currencies on the DailyFXForums

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.