Two trades to watch: GBP/USD eyes 1.33, Adidas extends gains

GBP/USD comes under pressure as UK unemployment rises & claimant count surges. Adidas rides higher after potential Reebok sale announcement.

Charts (1)

GBP/USD: Struggling After Weak Jobs Data


• UK unemployment Oct 4.9% vs 4.8% Sept
• Claimant count surges +64.3k 
• US Dollar firms amid surging covid number & tighter restrictions
• Brexit headlines will be watched closely

GBP/USD
is wobbling in early trade. It remains above the ascending trendline that dates back to early November, which offers support at 1.3317. However, the pair eased back from a strong push higher to 1.3450 in the previous session warranting caution for the bulls. 

$1.33 horizontal support and $1.3250 (200 SMA 4H chart) have offered strong support since late November attracting dip buyers and could continue to do so. A break-through support at 1.32 could open the door to a deeper sell off to 1.3165/7 and 1.31.

On the flip side a move above 1.3360 (50 & 100 4H chart) could confirm the bullish trend ahead of resistance at 1.34 round number and 1.3450 yesterday’s swing high and 1.35.
Click here to learn more about trading currencies.




Adidas' Bullish Run Continues

Adidas earmarks underperforming Reebok for potential sale
• Acquired in 2005 for $3.8 billion
• Final decision due March ’21 with official strategy presentation
• Share price rallied on announcement yesterday

Adidas has rallied hard from its mid-March low rising over 72%. It now trades flat on the year. It trades above its ascending trend line dating back to May and above its 50, 100 & 200 sma on the daily chart. All bullish signals suggesting there could be more upside. 

Immediate resistance can be seen at 290.00, December high. A break-through here could see 300.00 round number and 306.00 draw into focus.

On the downside, support from 50 sma can be seen at 276.00 prior to 270.00 where ascending trend line & 100 sma converge.  A break-through here could negate the current uptrend and open the door to 250.00 prior to 245.00.

Click here to learn more about trading shares


Click here to learn more about trading shares

More from GBP

Disclaimer

This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.