GBP/USD Spikes Above 1.45 on Disappointing NFP

GBP/USD Spikes Above 1.45 on Disappointing NFP

3 June 2016, 14:51
Roberto Jacobs
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GBP/USD Spikes Above 1.45 on Disappointing NFP

GBP/USD jumped to fresh highs above 1.4500 as the greenback weakened broadly following weaker-than-expected US nonfarm payrolls, which raises doubts about the strength of US economy ahead of the Fed June meeting.

GBP/USD rose about 100 pips in a matter of minutes and peaked at 1.4522, before retreating slightly. It was last trading at 1.4493, recording a 0.44% gain on Friday.

US economy added only 38,000 new jobs in May, the weakest performance since September 2010 and well below expectations of a 164,000 gain. The unemployment rate however, fell to 4.7% in May from 5.0% in April.

GBP/USD levels to consider

In terms of technical levels, resistances are seen at 1.4547 (10-day SMA) and not much until 1.4723 (May 31 high). On the flip side, next supports could be found at 1.4385 (Jun 1 low), 1.4340/31 (100-day SMA/May monthly low)  and 1.4299 (Apr 21 low).


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