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Can the dollar extend its gains against the board?

Today I’m looking at Cable’s short-term trend line support for opportunities.

Before moving on, ICYMI, today’s Daily Asia-London Session Watchlist looked at EUR/GBP’s triangle consolidation for downside breakout opportunities. Be sure to check that out to see if there is still a potential play!

And now for the headlines that rocked the markets in the last trading sessions:

Fresh Market Headlines & Economic Data:

Upcoming Potential Catalysts on the Economic Calendar:

  • Eurozone retail sales data at 9:00 am GMT
  • Fed’s Powell AND ECB’s Lagarde to participate in a global conference at 11:00 am GMT
  • U.S. NFP report at 12:30 pm GMT
  • Canada’s jobs data at 12:30 pm GMT
  • Canada’s IVEY PMI at 2:00 pm GMT

What to Watch: GBP/USD

GBP/USD 1-hour Forex Chart
GBP/USD 1-hour Forex Chart

GBP/USD is consolidating around the 1.4100 psychological handle that had served as support in the second half of May. What’s more, it’s also near a trend line support that hasn’t been broken since April 2021.

Can pound bulls extend their uptrend today? All eyes will be on Uncle Sam’s labor market report for direction.

Word around is that markets are expecting strong numbers from the economy after yesterday’s upside surprises in the weekly initial jobless claims and ADP reports. Some are pricing in a 1-million gain in May’s net job creation!

But not all traders are impressed. See, details of the ADP and the ISM services PMIs still point to some weakness in the labor market. Unless we see serious upside surprises, it would be hard for dollar bulls to keep their mojo until the end of the week.

Meanwhile, the U.K. is still set to remove most of its COVID-19 restrictions by June 21.

If today’s data releases fail to boost the dollar higher, then GBP/USD could find support at 1.4100 and extend its uptrend.

But if Uncle Sam surprises us with its May labor market numbers, then Cable might finally break below its trend line support and test inflection points like 1.4025 or 1.3975.