GBP/USD brushes off US optimism into US closing hours

By FXstreet.com | July 03, 2014 AAA

FXStreet (Guatemala) - GBP/USD is trading at 1.7151, down -0.09% on the day, having posted a daily high at 1.7170 and low at 1.7101.

GBP/USD was creeping lower leading into the US jobs numbers and then took a hit on the release to test the downside in the 1.71 handle. “A solid US nonfarm payrolls report injected some optimism into the end of the week, driving rates higher across most of the G10. The USD gained ground against most of the majors”, explained analysts at TD Securities. The drop was short lived and the pound found traction yet again back onto the mid point of the handle. Now, looking to a daily chart, we see that RSI is neutral and back at 73.64. The analysts at TD Securities noted that the data calendar quiets down into next week, but some key hard data out of the UK may help to shape expectations around just how soon the BoE will start tightening policy. “FOMC minutes will also be a highlight, as markets will likely spend the next few days trying to decide what this now unambiguously strong trend in job growth will mean for Fed policy as QE comes to a close”.

GBP/USD Levels

Current price is 1.7151, with resistance ahead at 1.7162 (Daily Classic PP), 1.7166 (Daily Open), 1.7166 (Monthly High), (Weekly High) and (Annual High). Next support to the downside can be found at 1.7149 (Hourly 20 EMA), 1.7144 (Daily Classic S1), 1.7140 (Yesterday's Low), 1.7123 (Daily Classic S2) and 1.7114 (Weekly Classic R2).

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