GBP/USD remains in bearish territory

By FXstreet.com | August 01, 2014 AAA

FXStreet (Guatemala) - GBP/USD is trading at 1.6831, down -0.32% on the day, having posted a daily high at 1.6894 and low at 1.6813.

GBP/USD hasn’t been quite the rollercoaster we might have had on previous event driven Fridays in the past, and the greenback has stuck to a robust theme of stronger for longer by the looks of things, despite the soft jobs data surprise. However, James Knightley, analyst at ING, explained that interestingly, the employment component surged to 58.2 from 52.8, taking it to its highest level since June 2011, contradicting today’s softish jobs numbers. “Production is up at 61.2 versus the break-even 50 level while new orders jumped nearly 5 points to 63.4. This is all really good news for the US growth story with the headline ISM index at levels historically consistent with GDP growth running at 4%YoY versus the current rate of 2.4%”.

GBP/USD Levels

Looking to a daily chart, we see that RSI is neutral at 30.85. The 200 SMA is currently at 1.6884, down from 1.6970 at the last period close, and declining on the hourly GBP/USD chart. Moving with a downward trend, the exponential average closing price is 1.7016.

With spot trading at 1.6832, we can see next resistance ahead at 1.6852 (Daily Classic S1), 1.6855 (Hourly 20 EMA), 1.6858 (Daily 100 SMA) and 1.6872 (Weekly Classic S2). Support below can be found at 1.6819 (Daily Classic S2), 1.6813 (Daily Low), 1.6784 (Daily Classic S3) and 1.6626 (Daily 200 SMA).

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