gbpusd retreats on us employment report 163562015
<p>GBP/USD (daily chart shown below) began a tentative retreat on Friday after the US dollar gained on a better-than-expected employment report. The US Labor Department […]</p>
Share this:
GBP/USD (daily chart shown below) began a tentative retreat on Friday after the US dollar gained on a better-than-expected employment report.
The US Labor Department reported that 257,000 jobs were created in the US during the month of January, easily beating consensus estimates of around 236,000.
Despite a slightly higher-than-expected unemployment rate of 5.7%, the positive jobs report prompted an immediate strengthening of the US dollar against most major currencies, including the British pound.
GBP/USD had reached a one-month high of 1.5350 earlier on Friday, which was the latest culmination of the recent rebound from the late January low of 1.4950.
Overall, GBP/USD continues to trade within a sharp bearish trend from the 1.7190 high in mid-July of last year.
Friday’s high before the US employment report reached up to strong resistance around a major downtrend resistance line as well as the key 50-day moving average.
With the current retreat, downside pressure should continue to prevail within the context of the strong downtrend. A continuation of the bearish trend on a turn back down below 1.5000 could once again begin to target lower support levels around 1.4800 and then 1.4500.
Related tags:
Open an account in minutes
Experience award-winning platforms with fast and secure execution, and enjoy tight spreads from 0.5 pts on FX and 0.3 pts on indices.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.forex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.