GBP/USD Trims Losses, Eyes 1.4500

GBP/USD Trims Losses, Eyes 1.4500

6 May 2016, 10:15
Roberto Jacobs
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GBP/USD Trims Losses, Eyes 1.4500

The now softer tone in the greenback has helped GBP/USD to erode initial losses and trade closer to the 1.4500 barrier.

GBP/USD focus on Payrolls

Spot has recovered the smile after bottoming out in the mid-1.4400s on Thursday, as the US dollar is giving away some of its weekly gains ahead of US Non-farm Payrolls due later.

Market bets expect the US economy to have created slightly more than 200K jobs during April and the jobless rate to stay put at 5.0% in the same period.

USD is deflating from recent highs despite yesterday’s comments by FOMC’s Kaplan, Lockhart, Williams and Dudley have left the door open for a rate hike at the June meeting, all depending on the incoming data.

GBP/USD levels to consider

As of writing the pair is down 0.01% at 1.4485 facing the next support at 1.4415 (20-day sma) ahead of 1.4298 (low Apr.21) and finally 1.4272 (55-day sma). On the flip side, a break above 1.4770 (high May 3) would open the door to 1.4815 (2016 high Jan.4) and finally 1.4848 (200-day sma).


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