GBP/USD Declines After U.S. Nonfarm Payrolls Reading
FxGrow | Feb 05, 2016 12:54PM ET
GBP/USD declines after U.S. nonfarm payrolls reading
After macroeconomic reading of U.S. nonfarm payrolls, dollar strengthened. EUR/USD and GBP/USD declined, but a more interesting situation can be seen at GBP/USD. Nonfarm payrolls grew 151K in January, however that reading is almost 20% worse than the forecast. From the other side the unemployment rate edged down to 4.9% (which is also different from forecasts).
For more than a month price declined and 2 weeks ago rebound occurred. Current local high coincides with 50% Fibonacci retracement of previous downward movement. Last Wednesday bulls broke upper limit of bullish regression channel and today there is an attempt of return to its range. If price stays above 1.4500, 1st target for falls will be at 1.4400. Next goal for bears will be 1.4200, which is a lower limit of the channel. However, if upward movement returns and price stays above 1.4500, nearest resistances will be at 1.4560, 1.4600.
Time-frame H4
Disclaimer: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.