Morning Insights 2nd July

Simon Alagbe

Analyst

GBPUSD

Instrument: GBPUSD

Intraday: Bullish

Technical Analysis

Preference: Buy position is envisaged if price trades above 1.25297 with take profit at 1.26046.

Alternative scenario: Sell position is envisaged if price trades below 1.24632 with take profit at key level 1.24053.


Fundamentals:

Average Hourly Earnings m/m (USD) 1:30pm

Non-Farm Employment Change (USD) 1:30pm

Unemployment Rate (USD) 1:30pm

Comment: European countries and stock market traded higher at the early hours of today after potential COVID 19 vaccine showed positive results. However, investors are still weary of the rising cases of Covid 19. Despite that, this pair is envisaged to still trade higher till the NFP news coming up by 1:30pm today.


Instrument: GOLD

Intraday: Bearish

Technical Analysis


Preference: Sell position is envisaged if price trades below 1765.44 with take profit at key level 1761.78.

Alternative scenario: Buy if price trades above 1770.34 with take profit at 1775.05.

Fundamentals:

Average Hourly Earnings m/m (USD) 1:30pm

Non-Farm Employment Change (USD) 1:30pm

Unemployment Rate (USD) 1:30pm

Comment: Gold seen as a safe haven has always reacted negatively when sentiments in the market become positive. Given that a potential COVID 19 treatment is underway it is envisaged that Gold trades bearish today. We should also be cautious of the employment data coming out by 1pm today as it also determines investors sentiment on the state of the US economy.

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