9 Jan 2015
GBP/USD trades above 5-DMA
FXStreet (Mumbai) - The GBP/USD pair extended gains ahead of the US session to trade above the 5-DMA located at 1.5151 levels, although further gains depend on the US December non-farm payroll data (NFP).
The pair currently trades 0.48% higher at 1.5160 levels. The Pound saw a much needed corrective move after the official data in the UK showed Trade deficit contracted to GBP1.4 billion in November; lowest since June 2013. Meanwhile, the drop in the November UK industrial production was shrugged-off by the markets. Moreover, part of the gains witnessed now are also due to a broad based weakness seen in the US dollar ahead of the NFP data. Markets are expecting the data to show that economy added 240K jobs in November. However, given the stellar November NFP number (321K), and an upbeat ADP report released earlier today, expectations are high. Still, the US dollar index has weakened 0.22% to trade at 92.35 levels.
GBP/USD Technical Levels
The pair has an immediate resistance at 1.5177 (Jan. 5th high), above which the pair could test 1.52 levels. Meanwhile, immediate support is seen at 1.5151 (5-DMA), under which the pair could re-test 1.5120 levels.
The pair currently trades 0.48% higher at 1.5160 levels. The Pound saw a much needed corrective move after the official data in the UK showed Trade deficit contracted to GBP1.4 billion in November; lowest since June 2013. Meanwhile, the drop in the November UK industrial production was shrugged-off by the markets. Moreover, part of the gains witnessed now are also due to a broad based weakness seen in the US dollar ahead of the NFP data. Markets are expecting the data to show that economy added 240K jobs in November. However, given the stellar November NFP number (321K), and an upbeat ADP report released earlier today, expectations are high. Still, the US dollar index has weakened 0.22% to trade at 92.35 levels.
GBP/USD Technical Levels
The pair has an immediate resistance at 1.5177 (Jan. 5th high), above which the pair could test 1.52 levels. Meanwhile, immediate support is seen at 1.5151 (5-DMA), under which the pair could re-test 1.5120 levels.