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16 May 2013
Forex: GBP/USD retakes 1.5300
FXstreet.com (Barcelona) - Poor data from the US labour market coupled with a contraction of the manufacturing sector gauged by the Philadelphia Fed index have sparked a sell-off in the greenback.
The disappointing data gave riskier assets some oxygen, lifting the pound, among others, to session highs around the key 1.5300 handle. According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, “Short term rallies are expected to remain capped 1.5285/1.5335. Key resistance is regarded as its 1.5601/50% retracement of the move seen this year, while capped here the market is viewed as having topped”.
At the moment, the cross is up 0.53% at 1.5316 with the next resistance at 1.5331 (high May 14) followed by 1.5339 (38.2% of 1.5607-1.5173) and finally 1.5370 (MA30d).
On the downside, a break below 1.5173 (low May 15) would expose 1.5128 (61.8% of 1.4832-1.5607) and then 1.5034 (low Apr.4).
The disappointing data gave riskier assets some oxygen, lifting the pound, among others, to session highs around the key 1.5300 handle. According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, “Short term rallies are expected to remain capped 1.5285/1.5335. Key resistance is regarded as its 1.5601/50% retracement of the move seen this year, while capped here the market is viewed as having topped”.
At the moment, the cross is up 0.53% at 1.5316 with the next resistance at 1.5331 (high May 14) followed by 1.5339 (38.2% of 1.5607-1.5173) and finally 1.5370 (MA30d).
On the downside, a break below 1.5173 (low May 15) would expose 1.5128 (61.8% of 1.4832-1.5607) and then 1.5034 (low Apr.4).