GBP/USD Plummets to Lowest Point on Strong US Jobs Data

GBP/USD (Short Position)

• Take Profit Level: 1.1850
• Stop Loss: 1.2150
• Timeline:1-2 days

GBP/USD (Long Position)

• Buy Stop: 1.2050
• Take Profit: 1.2145
• Stop Loss: 1.1860

The GBP/USD currency pair reached a low point last seen on January 6, as the market responded to strong US job numbers. The pair dropped to the key psychological level of 1.2000, which was about 3.5% below its highest point this year. Technical analysis showed that the sell-off was likely triggered by the double-top pattern formed at 1.2453 and a neckline of 1.1852, which could be the next target for sellers. The US economy added over 500k jobs in January, which led to expectations that the Fed may raise interest rates in March. The pair moved below key support levels, including the 50% Fibonacci Retracement level and the Woodie pivot point, and is expected to continue falling.

The outlook for the pair remains bearish, but it may see a short-term pullback before resuming the trend. The only notable economic data on Tuesday will be the UK’s Halifax house price index, which is expected to show a 0.3% YoY drop in January prices.

Forex Forecast

• GBP/USD: GBP/USD falls for third straight day, approaches 1.2000 level.
• ETH/USD: Ethereum showing short-term strength in the cycle from June 2022 low.
• USD/CHF: Bullish uptrend on 20-day EMA paves way for USD/CHF growth.
• AUD/USD: AUD strengthening gradually ahead of RBA monetary policy announcement.
• XRP/USD: XRP bears likely to test major resistance levels.
• EUR/USD: Bearish outlook for today but the pair continue to showcase momentum.
• EUR/GBP: EUR/GBP rallied with strong Euro and weak British Pound.
• USD/JPY: The pair will see some action with BoJ intervention.
• XAU/USD: Gold experiences selling pressure with USD index recovery.
• BTC/USD: The pair failed to maintain last month’s gains and started off the 2nd week of Feb in a bearish mood.

Relevant news