The GBP/USD Breaks Lower on NFP Data
- The GBP/USD breaks lower on NFP
- Potential bearish targets include 1.4434
- SSI has shifted to read +1.69
(Created using Marketscope 2.0 Charts)
The GBPUSD is currently rebounding off its daily lows after declining during today’s NFP (Non-Farm Payrolls) event. NFP figures were expected to be released at +190k; however, these expectations were missed with a total of 151k. Initially major pairs declined against the US Dollar. As seen above, the GBP/USD is still trading below todays S4 Camarilla pivot point at 1.4511. If the pair continues to fall, traders may extrapolate today’s 77 pip trading range to place initial bearish targets at 1.4434.
In the event of a bullish price reversal, the GBP/USD will first need to rebound above 1.4550. This area on the chart represents range support, and a move here would suggest a change in the present bearish market conditions. With today’s S3 pivot being found at 1.4550, range resistance is conversely found at the R3 pivot at a price of 1.4625.
SSI (Speculative Sentiment Index) for the GBP/USD currently reads +1.69. While this value is negative, it should be mentioned that this figure has declined from last week’s total of +2.13. If SSI continues to decline to a more natural figure, it may suggest a slowing of the pair’s current bearish momentum.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.