Two trades to watch: GBP/USD eyes 1.33, Adidas extends gains
Fiona Cincotta December 15, 2020 8:44 AM
GBP/USD comes under pressure as UK unemployment rises & claimant count surges. Adidas rides higher after potential Reebok sale announcement.
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
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.
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