GBP/USD Attempts Post NFP Breakout
- Strong NFP figures cause the GBP/USD to trade lower
- Bearish breakouts are signaled under 1.4556
- Bullish reversals potentially begin over 1.4585
(Created using Marketscope 2.0 Charts)
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The GBP/USD is trading lower this morning after today’s US Payroll figures (NFP) were released better than expected. Expectations for NFP were set at 200k, and were soundly beat this morning after posting at 290k. The US Dollar has initially rallied from this news, causing pairs such as the GBP/USD to decline in value. Now that NFP has concluded traders may continue to watch for further declines under today’s S4 pivot point, which resides at a price of 1.4556. In the event of a breakout below this value traders may begin to extrapolate today’s 59-pip range to find initial targets near 1.4497.
If the current bout of US Dollar strength begins to falter, traders will begin looking for bullish reversal for the GBP/USD over 1.4585. This value is represented above by the S3 pivot point, and a move beyond this point may suggest price action attempting to test values of resistance. It is worth noting that range resistance is currently found at 1.4644, and todays R4 pivot point resides at a price of 1.4674. In the event that prices trade up to these values, it would suggest that the GBP/USD’s bearish momentum has at least temporarily concluded.
Current SSI (Speculative Sentiment Index) for the GBP/USD has also continued to reside at extremes going into this weeks close. The index is currently reading at +2.77, and when used as a contrarian indicator, this may suggest that the GBP/USD is preparing for a further decline.
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