GBP/USD – Limited Movement to Start Off Week

The pound is trading quietly on Monday. In the North American session, GBP/USD is trading just shy of the 1.53 line. On the release front, it’s a quiet start to the week. In the Labor Market Conditions Index slipped to 4.9 points in January. There are no British releases on Monday.

US releases ended the week with a superb US Nonfarm Payrolls report for January. The key employment indicator improved to 257 thousand in January, up from 252 thousand a month earlier. This easily beat the estimate of 236 thousand. The Federal Reserve has been clear that the employment numbers will have to be strong before a rate hike kicks in, so the strong NFP reading has reinforced expectations for an interest rate in mid-2015, which would be a boost for the US dollar.

British PMIs completed a sweep last week, as Construction PMI jumped to 57.2 points, up from 55.8 a month earlier. This beat the forecast of 56.6 points. Construction PMI followed positive readings from the Services and Manufacturing PMIs earlier in the week. The pound enjoyed a strong week, gaining about 160 points.

GBP/USD for Monday, February 9, 2015

GBP/USD February 9 at 16:55 GMT

GBP/USD 1.5239 H: 1.5267 L: 1.5221

GBP/USD Technical

• GBP/USD showed little movement in the Asian session. The pair posted slight losses in the European session. GBP/USD is steady in North American trade.
• 1.5282 is a weak resistance line. 1.5392 is stronger.
• 1.5165 is an immediate support line.
• Current range: 1.5165 to 1.5282

Further levels in both directions:

• Below: 1.5165, 1.5008, 1.4873 and 1.4781
• Above: 1.5282, 1.5392, 1.5505, 1.5642 and 1.5786

OANDA’s Open Positions Ratio

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

GBP/USD Fundamentals

• 15:00 US Labor Market Conditions Index. Actual 4.9 points.
• 21:00 US FOMC Member Jerome Powell Speaks.

*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.