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31 Oct 2013
GBP/USD retreats on slightly better US labor data
FXstreet.com (Athens) – The GBP/USD was trading upwards since the kick off of the European trading session, but as soon as the US labor data released, the cross started to move slightly downwards.
GBP/USD downwards after a little better US jobs data; cable remains very vulnerable to data
The GBP/USD was trading the upper level since the early opening in European trading session, but as soon as the slightly better US labor data released across the board, the cable start to move slightly downwards and it is still under pressure. Briefly regarding the data, The number of people applying for unemployment benefits fell by 10,000 last week to 340,000, slightly above expectations of 339,000. Taken for granted that yesterday FOMC provided a marginally more hawkish stance, putting again riddles on market participants and making traders to scale back their bets ahead of FOMC decision, it might be more fruitful for traders to focus on the upcoming data. Elaborating on, the Fed remains absolutely data-dependent, and markets will now focus to next week’s US NFP data to set the tone for the greenback heading into the Fed’s December meeting.
Technical Aspects on the GBP/USD
Karen Jones Head Technical Analyst of Commerzbank, mentions that the “GBP/USD just about closed below the 3 month uptrend yesterday, ideally we would like to see further weakness today but the market remains vulnerable on the downside. Intraday charts are suggesting that we should see the market struggle now 1.6090/1.6140.Rallies are expected to find the 1.6259 early October high and the 1.6302/69 2012 highs and 2009-13 resistance line tough overhead resistance. We look for losses to the recent low and initial Fibonacci support at 1.5896/1.5915. Failure there will target the 38.2% Fibonacci retracement of the July-to-October advance at 1.5705 and possibly 1.5535, the 50%retracement.”
GBP/USD downwards after a little better US jobs data; cable remains very vulnerable to data
The GBP/USD was trading the upper level since the early opening in European trading session, but as soon as the slightly better US labor data released across the board, the cable start to move slightly downwards and it is still under pressure. Briefly regarding the data, The number of people applying for unemployment benefits fell by 10,000 last week to 340,000, slightly above expectations of 339,000. Taken for granted that yesterday FOMC provided a marginally more hawkish stance, putting again riddles on market participants and making traders to scale back their bets ahead of FOMC decision, it might be more fruitful for traders to focus on the upcoming data. Elaborating on, the Fed remains absolutely data-dependent, and markets will now focus to next week’s US NFP data to set the tone for the greenback heading into the Fed’s December meeting.
Technical Aspects on the GBP/USD
Karen Jones Head Technical Analyst of Commerzbank, mentions that the “GBP/USD just about closed below the 3 month uptrend yesterday, ideally we would like to see further weakness today but the market remains vulnerable on the downside. Intraday charts are suggesting that we should see the market struggle now 1.6090/1.6140.Rallies are expected to find the 1.6259 early October high and the 1.6302/69 2012 highs and 2009-13 resistance line tough overhead resistance. We look for losses to the recent low and initial Fibonacci support at 1.5896/1.5915. Failure there will target the 38.2% Fibonacci retracement of the July-to-October advance at 1.5705 and possibly 1.5535, the 50%retracement.”