5 Dec 2014
GBP/USD likely to test 1.58 post US NFP data – FXStreet
FXStreet (Barcelona) - FXStreet Analyst and Editor, Omkar Godbole, views that GBP/USD might test 1.58 levels if the NFP print stays at or below the consensus.
Key Quotes
“The pair has repeatedly bounced from the 1.56 levels since mid-November, although gains have been capped around 1.58.”
“The gains were capped since falling energy prices pushed inflation expectations lower. However, as mentioned earlier, weaker energy prices are now being considered positive for economic growth.”
“Hence, the probability of GBP/USD pair testing 1.58 levels is high in case the NFP data meets market expectation or comes-in lower than expected.”
“Moreover, it would take a surprisingly strong number, which is higher-than-expected print of 230K, in order to see a fresh selling pressure in the GBP/USD pair.”
“Furthermore, if the pair does rise to 1.58 levels today, it would confirm a double bottom formation on the daily chart, with the neckline resistance at 1.56. A breach of neckline may lead to a technical target of 1.6 in the short–term.”
Key Quotes
“The pair has repeatedly bounced from the 1.56 levels since mid-November, although gains have been capped around 1.58.”
“The gains were capped since falling energy prices pushed inflation expectations lower. However, as mentioned earlier, weaker energy prices are now being considered positive for economic growth.”
“Hence, the probability of GBP/USD pair testing 1.58 levels is high in case the NFP data meets market expectation or comes-in lower than expected.”
“Moreover, it would take a surprisingly strong number, which is higher-than-expected print of 230K, in order to see a fresh selling pressure in the GBP/USD pair.”
“Furthermore, if the pair does rise to 1.58 levels today, it would confirm a double bottom formation on the daily chart, with the neckline resistance at 1.56. A breach of neckline may lead to a technical target of 1.6 in the short–term.”