Today's review of the GBP/USD currency pair will begin with the fact that quite interesting and not always clear things sometimes happen on the market. Although the Bank of England has already raised the main interest rate several times and will continue to do so, the British pound sterling shows a weaker strengthening against the US dollar when such a strengthening takes place.
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So at yesterday's trading, the growth of GBP/USD was more modest than that of the euro/dollar. The factors contributing to such price dynamics of the "Briton" are called different. Likely, the technical picture of the main pound/dollar currency pair and the movement in the euro/pound cross-rate play an important role in this. Before proceeding to the technical analysis of GBP/USD, let me remind you once again that today at 13:30 London time, labor reports for May will be received from the United States of America. You can learn more about the expectations for the US labor market by reading today's article on the euro/dollar. In order not to repeat, I will only note that the forecasts for the unemployment rate, the creation of new jobs in non-agricultural sectors of the economy, as well as the growth of average hourly wages cannot be called too high. At the same time, I assume that a deviation from forecasts towards their weaker actual figures may put pressure on the US dollar across a wide range of the market.
A characteristic technical feature of yesterday's trades was their closing over the red line of the Tenkan Ichimoku indicator. However, this can only be perceived as the first signal regarding the subsequent strengthening of the quote. In my personal opinion, the bullish prospects of GBP/USD will become most obvious only in the case of a true breakdown of the strong resistance of sellers at 1.2665, as well as the 50-simple moving average, which is now passing at 1.2709. The bearish scenario will have a good chance of its further implementation only in the case of a true breakdown of the support of 1.2657 (June 1 lows) and the subsequent passage down of the blue Kijun line, which is at 1.2410. That's the story. There are more questions than answers regarding today's positioning for the GBP/USD pair. For sure, data on the US labor market will play a decisive role relative to the closing of today and weekly trading. Given this factor, I will not give any specific trading recommendations today, so as not to mislead respected traders. Already on Monday, taking into account the actual figures on the US labor market, the reaction of market participants to them, as well as the closing prices of today's and weekly trading, we will determine the prospects for the price dynamics of the pound/dollar currency pair. The only thing I would like to draw attention to is the inexpediency of transferring open positions to Monday.
