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Pound under pressure: GBP/USD drops to test 1.4600

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 6, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Córdoba) - The pound weakened across the board during last hours and send GBP/USD to test multi-month lows around the 1.4600 area. So far the pair has been able to hold on top but remains under pressure as EUR/GBP rallied above 0.7350.

    GBP/USD down despite data, ahead of FOMC minutes

    Cable trimmed losses earlier but the recovery was capped by at 1.4560. From there it bounced back toward daily lows and currently it trades at 1.4601/06. Immediately after the release of the ADP employment report the pair fell to 1.4600, hitting the lowest level since April.

    A break below 1.4600 would expose 2015 lows that lie at 1.4565; if its drops below the pair would be trading at the weakest since 2010.

    Not even a worst-than-expected ISM Non-manufacturing reading in the US removed pressure off the pair. Now traders await the FOMC minutes from the historic meeting of December, when the Federal Reserve rose rates for the first time since 2006.
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