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GBP/USD hits 6-1/2 month low after Non-farm payrolls release

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 6, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - The sharp spike in the USD following a stellar Non-farm payrolls report pushed the GBP/USD pair to 1.5037; its lowest since April 24th.

    USD gains as 2-yr yield spikes

    The US dollar strengthened across the board as the 2-yr treasury yield in the US rose to a high of 0.958%. The yield is known to mimic short-term interest rate expectations. A strong NFP report released today cemented the December rate hike bets, which pushed Sterling lower.

    At the moment, the pair is trading near 1.5045 levels with no sign of a respite. The cable was already one of the weakest major currencies ahead of the report; courtesy of the dovish BOE and weak UK data.

    GBP/USD Technical Levels

    The immediate support is seen at 1.50, under which the pair could extend the losses to 1.4915 (61.8% of Jan 2009 low-July 2014 high). On the higher side, a corrective rally could lead to a re-test of 1.5087 (61.8% of Apr-Jun rally), above which the spot could test 1.5107 (Oct 1 low) and 1.5163 (Sep 4 low).
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