GBP/USD: Cable Remains Constructive But Downside Still Vulnerable; US Jobs Data in Focus

Technical analysis of Forex market

Cable is moving within a narrow range in early Friday and remains constructive after Thursday’s 0.75% advance.

Technical picture is mixed, as moving averages of 10/20/30 days are conflicting, bullish momentum is weaker and RSI neutral.

Falling daily Ichimoku clouds weighs, along with a double-top pattern forming on weekly chart and warning of recovery stall.

Near-term action is struggling at 10DMA (1.2571) which needs to be cleared to open way for full retracement of 1.2666/1.2458 pullback.

On the other side, holding below 10DMA would keep the downside vulnerable, but break of pullback’s low (1.2458), reinforced by 20DMA, would bring bears back to play.

US NFP data are key event today and expected to generate fresh direction signal.

Res: 1.2589; 1.2616; 1.2666; 1.2700
Sup: 1.2546; 1.2471; 1.2458; 1.2411