Morning Insights 5th June

Simon Alagbe

Analyst

Instrument: GBPUSD

Intraday: Bullish

Technical Analysis

Preference: Buy position is envisaged if price trades above 1.26660 with take profit at 1.26987.

Alternative scenario: Sell position is envisaged if price trades below 1.26111 with take profit at 1.25756.

Fundamentals:

ADP Non-Farm Employment Change (US) 1:15 PM

Comment: The Cable has been strengthened in the last set of days and it has eventually broken the 1.12600 region; this has been buoyed by bad sentiments from the dollar and is envisaged to go even higher.



Instrument: OIL

Intraday: Bearish

Technical Analysis

Preference: Sell position is envisaged if price trades below 40.16 with take profit at 39.09

Alternative scenario: Buy position is envisaged if price trades above 40.79 with take profit at 42.06

Fundamentals:

Baker Hughes Rig count (US) 6 PM

Comment: Oil is on a huge uptrend in the last of weeks but technically, the resistance level at 40.79 is proving as a huge resistance and it is expected to push prices lower to the 39$ region for today as there's no strong fundamentals to support the bulls towards breaking the 40.79 price region. 

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