GBP/USD – Pound Gains as Markets Eye UK Job Data

The pound has posted gains on Tuesday, as GBP/USD is trading in the mid-1.51 range. In the US, there was just one indicator on the calendar. NAHB Housing Market Index showed little change, with a reading of 58 points for January . There are no British releases on Tuesday, but the UK will release Claimant Count Change on Wednesday. The markets are expecting another strong release in December, with an estimate of -24.2 thousand.

It has been less than a week since the SNB stunned the markets by suddenly removing the cap with the euro. This resulted in the euro recording sharp losses against the Swiss franc and the US dollar. However, the markets have had to quickly change focus, as there is growing anticipation that the ECB will announce a QE package on Thursday, when the ECB meets for a crucial policy meeting. The Eurozone has been plagued by deflation and weak growth, and the SNB shocker only reinforces the belief that the ECB will finally make a move. Even if QE has been priced in, there’s no way to know the size of such a scheme, so traders could be in for plenty of volatility from EUR/USD later in the week.

GBP/USD for Tuesday, January 20, 2015

GBP/USD January 20 at 16:50 GMT

GBP/USD 1.5163 H: 1.5199 L: 1.5058

 

GBP/USD Technical

S3 S2 S1 R1 R2 R3
1.4781 1.4873 1.5008 1.5165 1.5282 1.5392

 

  • GBP/USD moved lower in the Asian session but then recovered. The pair posted gains in European trade, testing resistance at 1.5165. GBP/USD has edged lower in the North American session.
  • On the upside, 1.5165 is under strong pressure. 1.5282 is stronger.
  • 1.5008 is a strong support level, protecting the symbolic 1.50 line.
  • Current range: 1.5008 to 1.5165

Further levels in both directions:

  • Below: 1.5008, 14873, 1.4781 and 1.4670
  • Above: 1.5165, 1.5282, 1.5392, 1.5505 and 1.5644

 

OANDA’s Open Positions Ratio

GBP/USD ratio is pointing to gains in long positions on Tuesday, reversing the direction seen a day earlier. This is consistent with the pair’s movement, as the pound has posted gains. The ratio has a majority of long positions, indicative of trader bias towards the pound continuing to move upwards.

GBP/USD Fundamentals

  • 15:00 US FOMC Member Jerome Powell Speaks.
  • 15:00 US NAHB Housing Market Index. Estimate 58 points. Actual 57 points.

*Key releases are highlighted in bold

*All release times are GMT

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.