We got what we have been looking for this morning – a bullish breakout in GBP/USD after yesterday’s trading was not to our liking as we had to give up some monthly gains on the last trading day of November. While the Cable already seemed to test the 1.2560-resistance level in the early morning hours, a sustained upside break was anything but certain given the strength of the U.S. dollar and investor's risk aversion ahead of tomorrow's U.S. non-farm payrolls report.
We now see a next resistance around 1.2670, before the pound may climb towards 1.2750, and even perhaps 1.28. However, sterling bulls should bear in mind that ahead of the NFP data, the greenback will set the tone in the currency market, which is why the pound could easily give up some of its recent gains on profit taking. The previous resistance zone at 1.2560 could now turn into support for the GBP/USD.
Here are our daily signal alerts:
EUR/USD
Long at 1.0635 SL 25 TP 20, 50
Short at 1.0580 SL 25 TP 20, 40
GBP/USD
Long at 1.2560 SL 25 TP 40-50
Short at 1.2490 SL 25 TP 15, 30
Daily signal performance in pips:
November 2016: EUR/USD: +230 pips, GBP/USD: +279 pips
We wish you good trades and many pips!
Disclaimer: Any and all liability of the author is excluded.