Published On: Tue, Apr 17th, 2018

Cable’s real test begins today

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Potential landmines sit in the way of cable in its bid higher

GBP/USD buyers may have been able to find a daily close above the 76.4/23.6 retracement level for the first time since the Brexit vote, but it’s not plain sailing from here.

The break of the resistance level is a key step towards a further upside move, but there’s still a lot of fundamental data that could get in the way. And that begins today via the February jobs report for the UK.

The jobs report today will be a key focus as the market (and the BOE) looks for further signs of wage growth in the UK economy – so as to relieve the strain currently felt by the consumer.

Moving ahead on the week, tomorrow we will have inflation data and Brexit risk. And on Thursday, we will have retail sales data. Those are potentially price moving events that could skew the bias for the pair depending on the figures/headlines.

While cable sure looks poised for a further move to the upside, there’s still some key risk events for buyers to navigate through before declaring victory just yet.

As for the bigger picture, in terms of upside not much else sits in the way between cable and a retest of the 1.5000 level. The 1.4500 figure level should provide a bit of psychological resistance but after that the next key resistance level is at 1.4770 but you have to figure that if cable does indeed move towards said level, the momentum should carry it towards 1.5000.

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