10 Jan 2014
GBP/USD overdone?
FXstreet.com (Guatemala) - GBP/USD has been capped through the 1.65 handle and supply takes the pair into 1.6490’s.
With UK industrial production data disappointing, rather than revealing the solid gain that was expected today, Sterling was barely holding onto the 1.64 handle. But ultimately today was all about the US NFP print. Following an abysmal Non Farm Payrolls reading which registered at 74k, against expectations of 196k, and 241k (revised) previous, Sterling rallied on the data, meeting supply through 1.65 handle and just shy of 1.6520. Currently the pair is propped at 1.6485/95. While the markets reaction to the negative news see’s the dollar much lower, in a broader sense we must realise that the Fed are not going to make any judgements on one single reading which may keep the unit contained from here.
GBP/USD Levels
The 20 DMA is 1.6407, the 50 DMA is 1.6279 and the 20 DMA is 1.5727. RSI (14) reads 59.23. Supports are ascending from 1.6339, 1.6374, 1.6395. Spot is 1.6494 and resistances are 1.6503, 1.6558, 1.6580 and 1.6605.
With UK industrial production data disappointing, rather than revealing the solid gain that was expected today, Sterling was barely holding onto the 1.64 handle. But ultimately today was all about the US NFP print. Following an abysmal Non Farm Payrolls reading which registered at 74k, against expectations of 196k, and 241k (revised) previous, Sterling rallied on the data, meeting supply through 1.65 handle and just shy of 1.6520. Currently the pair is propped at 1.6485/95. While the markets reaction to the negative news see’s the dollar much lower, in a broader sense we must realise that the Fed are not going to make any judgements on one single reading which may keep the unit contained from here.
GBP/USD Levels
The 20 DMA is 1.6407, the 50 DMA is 1.6279 and the 20 DMA is 1.5727. RSI (14) reads 59.23. Supports are ascending from 1.6339, 1.6374, 1.6395. Spot is 1.6494 and resistances are 1.6503, 1.6558, 1.6580 and 1.6605.