GBP/USD tests October lows, eyes 1.51 on NFP?

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - GBP/USD stalled its post-UK data driven recovery near 1.5160 levels and returned to fresh monthly lows, as the greenback keeps gaining ground across the board ahead of the US labor market report.

    GBP/USD sold-off into mixed UK data

    The GBP/USD pair trades -0.44% lower at 1.5142, reverting to fresh four-week lows posted at 1.5137 in last hours. The major faces double whammy this session, with the mixed set of UK industrial data and stronger demand for the US currency weighing heavily on the pair.

    The cable remains pressured after BOE Mark Carney refrained from commenting on the BOE rate hike ‘at the turn of this year’ and rather sounded more dovish than before. While the downward CPI and GDP revisions in the QIR also hurt the sentiment around sterling.

    Moving on, in the New York session ahead, markets await the crucial US employment data, which will set the tone for currency markets over the coming weeks. The payrolls are expected to show a 182,000 jobs increase, up from 142,000 in Sept.

    GBP/USD Levels to consider

    The pair has an immediate resistance at 1.5220 (daily highs), above which 1.5270 (daily pivot) would be tested. On the flip side, support is seen at 1.5105/00 (Sept lows/ psychological levels). Selling pressure would intensify below the last, dragging the pair towards 1.5087 (May lows).
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