GBP/USD – Pound Choppy in Light Trading

GBP/USD has been marked by choppy trading on Monday, as the pair is trading in the high-1.58 range in North American trade. With no releases out of the US or UK on Monday, trade has been light. On Friday, US Nonfarm Payrolls were a disappointment, falling well short of expectations.

Employment numbers have been strong in the US, and this played a major role in the Fed decision to wind up QE last week. However, US Nonfarm Payrolls, the most important employment indicator, disappointed on Friday. The indicator slipped to 214 thousand, well short of the estimate of 235 thousand. On a brighter note, the unemployment rate slipped to 5.8%, its lowest level in six years. On Thursday, Unemployment Claims fell to 278 thousand. This was better than the estimate of 285 thousand and marked a three-week low.

The markets are keeping a close eye on the BoE, which will release its inflation report on Wednesday. Inflation has slowed down in the UK, which means there is less pressure on the BoE to raise interest rates. The inflation report should be treated as a market-mover by traders. As well, the UK will release key employment data on Wednesday.

 

GBP/USD for Monday, November 10, 2014

GBP/USD November 10 at 16:25 GMT

GBP/USD 1.5883 H: 1.5918 L: 1.5864

 

GBP/USD Technical

S3 S2 S1 R1 R2 R3
1.5644 1.5717 1.5864 1.6000 1.6141 1.6263

 

  • GBP/USD has been unable to sustain any momentum in either direction and is almost unchanged on the day. The pair is putting pressure on support at 1.5864 but has been unable to break through.
  • On the downside, 1.5864 has held firm but remains under pressure. 1.5717 is stronger.
  • The round number of 1.6000 is a strong resistance line.
  • Current range: 1.5864 to 1.6000

Further levels in both directions:

  • Below: 1.5864, 1.5717, 1.5644 and 1.5505
  • Above: 1.6000, 1.6141, 1.6263, 1.6382 and 1.6524

 

OANDA’s Open Positions Ratio

GBP/USD ratio is pointing to gains in short positions on Monday. This is not consistent with the pair’s movement, as the pound is almost unchanged on the day. The ratio is pointing to a majority of long positions, indicative of trader bias towards the pound moving higher.

 

GBP/USD Fundamentals

  • There are no UK or US releases on Monday.

 

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Kenny Fisher

Kenny Fisher

Currency Analyst at Market Pulse
Kenny Fisher joined OANDA in 2012 as a Currency Analyst. Kenny writes a daily column about current economic and political developments affecting the major currency pairs, with a focus on fundamental analysis. Kenny began his career in forex at Bendix Foreign Exchange in Toronto, where he worked as a Corporate Account Manager for over seven years.