6 Mar 2015
GBP/USD move towards 1.5100 likely with a strong NFP – FXStreet
FXStreet (Barcelona) - With GBP/USD breaking the major support at 1.5200, Valeria Bednarik, Chief Analyst at FXStreet, explains that a strong NFP print might lead the pair to break below 1.5150 levels, paving way for 1.5100.
Key Quotes
“The GBP/USD pair broke below a major static support level, the 1.5200 figure, following the release of the UK Consumer Inflation Expectations, down to 1.9% from a previous 2.5%.”
“The dollar maintains a broad strength against the Pound ahead of US employment data, and the 4 hours chart shows that the 20 SMA has extended its bearish slope down to 1.5300, offering a strong dynamic resistance in the case of a sudden advance.”
“But technically the pair is strongly biased lower, as the technical indicators in the 4 hours chart maintain strong bearish slopes towards the downside despite being in extreme oversold levels.”
“Nevertheless, the intraday moves will be linked to the US data, with a recovery above 1.5200 probably signaling an upward corrective movement up to 1.5270, yesterday's high, and a break below 1.5150 exposing the pair to additional declines towards the 1.5100 level.”
Key Quotes
“The GBP/USD pair broke below a major static support level, the 1.5200 figure, following the release of the UK Consumer Inflation Expectations, down to 1.9% from a previous 2.5%.”
“The dollar maintains a broad strength against the Pound ahead of US employment data, and the 4 hours chart shows that the 20 SMA has extended its bearish slope down to 1.5300, offering a strong dynamic resistance in the case of a sudden advance.”
“But technically the pair is strongly biased lower, as the technical indicators in the 4 hours chart maintain strong bearish slopes towards the downside despite being in extreme oversold levels.”
“Nevertheless, the intraday moves will be linked to the US data, with a recovery above 1.5200 probably signaling an upward corrective movement up to 1.5270, yesterday's high, and a break below 1.5150 exposing the pair to additional declines towards the 1.5100 level.”