Cable is setting up ahead of the Bank of England decision tomorrow and Friday’s US jobs report. Both releases have impact on both sides of this currency pair so I always find it interesting to look at where the pair trades ahead of these back-to-back releases. Despite the overshoot break below 1.5500, the 61.8% Fib held to see cable rally back to 1.5700. With price exhausting at the whole number, a weak sterling has taken $GBPUSD lower into the zone between 1.5575 and 1.5600. This move lower technically gives bulls a nice buying opportunity. However given the event risk over the next 2 days, traders should assess their risk accordingly ahead of the BoE and NFP.
If cable closes the week above 1.5500, the pair remains bullish and favors a move back into the major 1.5800 support-turned-resistance level. A move into 1.5500 still remains a buying opportunity unless $GBPUSD closes out the week below the major psychological level. At current levels, it is still all about 1.5500.