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GBP/USD – Pound Steady in Limited Trade

The British pound is steady on Monday, following losses of almost 200 points on Friday. In Monday’s North American session, GBP/USD is trading at the 1.60 line, an psychologically important barrier. It’s a light trading day, with no major releases in either the UK or US  on Monday.

The US dollar was broadly stronger last week, and had notable success against the shrinking British pound. GBP/USD slid close to 300 points and dipped below the 1.60 line. The pound lost 200 points on Friday alone, following excellent US job data and a soft UK Services PMI.

US employment data sparkled on Friday. Nonfarm Employment change rebounded in September, climbing to 248 thousand. This exceeded expectations of 216 thousand. The unemployment rate dipped to 5.9%, the first time it’s been below the 6% threshold in over six years. With QE slated to end later this month, the focus will shift to the timetable for an interest rake hike. Strong job numbers such as these could put pressure on the Fed to make an interest rate move sooner rather than later.

On Friday, UK Services PMI dropped to 58.7 points, down from 60.5 points a month earlier. This marked a 3-month low for the index. British PMIs were a mix last week, underscoring concern that the UK economy is slowing down, so an anticipated rate hike may have to be put on hold. It’s the opposite story in the US, where strong numbers, notably employment data, has fuelled  expectations that the Federal Reserve may raise rates earlier than expected.

GBP/USD for Monday, October 6, 2014

GBP/USD October 6 at 15:00 GMT

GBP/USD 1.6003 H: 1.6157 L: 1.6003


GBP/USD Technical

S3 S2 S1 R1 R2 R3
1.5717 1.5864 1.6000 1.6141 1.6263 1.6382


Further levels in both directions:


OANDA’s Open Positions Ratio

GBP/USD ratio is pointing to gains in long positions on Monday. This is consistent with the pair’s movement, as the pound has posted slight gains. The pair has a majority of long positions, indicative of trader bias towards the pound continuing to move higher.

GBP/USD Fundamentals


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 [4]

Market Analyst at OANDA [5]
A highly experienced financial market analyst with a focus on fundamental analysis, Kenneth Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities. His work has been published in several major online financial publications including Investing.com, Seeking Alpha and FXStreet. Based in Israel, Kenny has been a MarketPulse contributor since 2012.
Kenny Fisher

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