GBP/USD: consolidated ahead of key employment data - FXStreet

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 10, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that the GBP/USD pair has shown little progress this Tuesday, having traded in a tight 20 pips range for most of a day, and with a short lived spike up to 1.5144 being quickly erased.

    Key Quotes:

    "Overall, the sentiment towards the Pound remains negative after the latest BOE monetary policy meeting, pointing for a delay in the UK rate hike, beyond the first half of 2016 as initially suspected.

    Anyway, the kingdom will release its latest employment data early Wednesday and expectations are of a steady unemployment rate of 5.4%, whilst 1.6K new people are expected to claim for unemployment benefits. Previous month figures were a huge disappointment, although wages remained strong. If the numbers are again below expectations, the GBP/USD pair can fall down to the 1.5000 figure, and even break below it.

    Technically, the 1 hour chart shows that the technical readings maintain a neutral stance, with the price stuck around a flat 20 SMA and the technical indicators hovering around their mid-lines.

    In the 4 hours chart, the price is unable to advance above a bearish 20 SMA, a few pips above the current level, whilst the Momentum indicator aims higher above its 100 line, and the RSI indicator consolidates flat near oversold territory."
    For more information, read our latest forex news.

Share This Page

free forex signals