Current trend

The GBP/USD pair is trading mixed, holding close to 1.2700. Trading participants are in no hurry to open new positions for the instrument, preferring to wait for new drivers to appear on the market.

The focus of investors tomorrow will be the June report on the US labor market, which, however, is unlikely to significantly affect the quotes. Anyway, the forecasts suggest an increase in the number of Nonfarm Payrolls in June by 225.0 thousand after an increase of 339.0 thousand in the previous month. At the same time, the Unemployment Rate may decrease from 3.7% to 3.6%, and the Average Hourly Earnings from 4.3% to 4.2%.

Statistics from the UK, published on Wednesday, July 5, was left without any attention from traders. The S&P Global Services PMI remained unchanged at 53.7 points in June, as previously expected, while the Composite PMI stood at 52.8 points. Today, data on the S&P Global Construction PMI will be presented in the UK: forecasts suggest a decrease in the index from 51.6 points to 50.9 points.

Support and resistance

On the D1 chart Bollinger Bands are reversing into the descending plane. The price range is narrowing, reflecting the emergence of ambiguous dynamics of trading in the short term. MACD is declining keeping a weak sell signal (located below the signal line). Stochastic keeps its upward direction but is approaching its highs, which reflects the risks of overbought pound in the ultra-short term.

Resistance levels: 1.2747, 1.2800, 1.2847, 1.2900.

Support levels: 1.2690, 1.2600, 1.2500, 1.2400.

Trading tips

Short positions may be opened after a breakdown of 1.2690 with the target at 1.2600. Stop-loss — 1.2747. Implementation time: 1-2 days.

A rebound from 1.2690 as from support followed by a breakout of 1.2747 may become a signal for opening new long positions with the target at 1.2847. Stop-loss — 1.2690.