16 Oct 2013
GBP/USD fading the spike to 1.6060
FXstreet.com (Edinburgh) -The sterling is now retracing the violent spike to 1.6060 after the UK labour market data, taking the GBP/USD back to the area of 1.6010.
GBP/USD remains above 1.6000
The pair is struggling to sustain the 1.6000 handle however, as the US fiscal events keep weighing on sentiment. The recent data showed that the jobless rate stayed put at 7.7%, matching the median while the Claimant Count dropped by 41.7K, bettering forecasts. Jane Foley, Strategist at Rabobank, suggested, “Over the coming months we view sterling as still vulnerable to disappointing economic data. It is unclear whether the shutdown of US government will filter through into a headwind for the UK economy, but already the UK is coping with weak growth in the Eurozone in addition to continued austerity and higher inflation”.
GBP/USD relevant levels
At the moment the pair is up 0.12% at 1.6018 with the next resistance at 1.6020 (MA10d) and then 1.6062 (MA21d). On the flip side, the initial support aligns at 1.5967 (low Oct.16) followed by 1.5950 (low Oct.15) and then 1.5923 (low Oct.11).
GBP/USD remains above 1.6000
The pair is struggling to sustain the 1.6000 handle however, as the US fiscal events keep weighing on sentiment. The recent data showed that the jobless rate stayed put at 7.7%, matching the median while the Claimant Count dropped by 41.7K, bettering forecasts. Jane Foley, Strategist at Rabobank, suggested, “Over the coming months we view sterling as still vulnerable to disappointing economic data. It is unclear whether the shutdown of US government will filter through into a headwind for the UK economy, but already the UK is coping with weak growth in the Eurozone in addition to continued austerity and higher inflation”.
GBP/USD relevant levels
At the moment the pair is up 0.12% at 1.6018 with the next resistance at 1.6020 (MA10d) and then 1.6062 (MA21d). On the flip side, the initial support aligns at 1.5967 (low Oct.16) followed by 1.5950 (low Oct.15) and then 1.5923 (low Oct.11).