- British Pound recovered well against the US dollar, but found resistance near 1.4250.
- There is a bullish trend line formed on the hourly chart of GBPUSD, which is at risk of a break down.
- A break below the trend and support area may call for a move towards the 1.4080 level.
- Today in the US, the labor market conditions index (LMCI) will be released, which is the only major economic release for the day.
The GBPUSD pair managed to gain bids this past week and traded above the 1.4200 resistance area. However, it looks like GBPUSD found offers near the 1.4250 level, which acted as a barrier and ignited a downside move.
There is a bullish trend line formed on the hourly chart of the GBPUSD pair, which may play a crucial role in the near term. A break below the trend and support area could ignite further losses, taking the pair towards the 1.4080 level.
On the downside, the next important support can be seen near the 100 hourly simple moving average.
Labor market conditions index (LMCI)
Today, the US labor market conditions index (LMCI), which is the primary source of common variation among 19 labor market indicators will be released. The last reading stands at 0.4, so let us whether there will be any increase in the US labor market conditions index (LMCI) or not in Feb 2016.
If the LMC index impresses, then there is a chance of the US dollar gaining traction during the upcoming session.
Overall, one must keep a close eye on the trend line and support area, as a break below it may easily take the GBPUSD pair towards the 100 hourly simple moving average.