November 10, 2013

Forex Market Rhythm: GBPUSD - How strong is 1.6?

Forex Market Rhythm: GBPUSD - How strong is 1.6?

GBPUSD market rhythm
Daily GBPUSD chart

Sterling falls on strong U.S. jobs data, weak UK trade 

Main points for weekend (Nov 7)

  • UK trade deficit unexpectedly at widest since Oct 2012 
  • Strong US jobs data pushes sterling/dollar lower 
  • Weak UK trade data also weighs on pound

The pound GBP=D4 fell 0.8 percent to $1.5964, taking it closer to Monday's three-week low of $1.5904.

"Sterling/dollar is under some downward pressure after the employment report from the U.S. revealed a healthier picture for jobs growth than had been anticipated," said Lee Hardman, currency economist at BTMU.

He said it was unlikely the Fed would begin to ease up on stimulus in December but that a January move was "very much in play. The pound could fall towards $1.57 by year-end, he said. (Reuters)

GBPUSD Market Rhythm

On the daily timeframe, GBPUSD are trying to re-test the red trend line I plotted. It was successfully failed to break above the resistance of 1.6120. Below, the 1.6 round number provided strong support which is repeatedly penetrated. 

1.61 provide heavy resistance, while there is also significant downward pressure after the NFP shows better than expected figures sparked fear about the fed tapper.

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About ArrowFX

Technically analyze the forex market mainly on USDJPY, EURUSD and GBPUSD by using market rhythm method started by Philip Nel on Forex Factory. The thread started on 2007 and still alive.
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