GBP/USD turns negative after US data

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 22, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The GBP/USD pair dropped to a low of 1.5392 after the US jobless claims hit fresh decade low, while the EUR/USD dropped on a dovish talk from ECB President Draghi.

    EUR drags cable lower

    The sharp sell-off in the EUR/USD pair kept Sterling buoyed against the common currency, but dragged cable lower. The weekly US initial jobless claims printed at 259K and added to the evidence of the labor market strength, which further weighed over the GBP/USD pair.

    At the moment, the pair is trading 1.5392, after having hit a low of 1.5387 levels. Ahead in the NY session, the moves in the EUR/USD pair are likely to guide the activity in the European majors.

    GBP/USD Technical Levels

    The immediate resistance is located at 1.5409 (38.2% of Apr-Jun rally), above which gains could be extended to 1.5446 (trend line resistance), followed by a major hurdle at 1.5507. On the lower side, support is seen at 1.5391 (50-DMA) and 1.5387 (Oct 13 high), under which the pair could test 1.5329 (200-DMA).
    For more information, read our latest forex news.

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