GBP/USD Accelerates NFP Led Up-mMve to 1.4550

GBP/USD Accelerates NFP Led Up-mMve to 1.4550

3 June 2016, 15:45
Roberto Jacobs

GBP/USD Accelerates NFP Led Up-mMve to 1.4550

The GBP/USD pair accelerated its sharp up-move post disappointing NFP headline numbers and surged past 1.4500 handle and is currently trading at a fresh session high level of 1.4550.

Ahead of the release, the pair was barely managing to hold 50-day SMA support near 1.4400 region as 'Brexit' fears remained key fundamental overhang that continued to weigh on the British Pound. 

However, bears were caught on the wrong foot after the US jobs report showed that economy added only 38,000 new jobs in May, which was far below the most pessimistic expectations. The unemployment rate however, fell to 4.7% in May from 5.0% in April.

Technical outlook

 Valeria Bednarik, Chief Analyst at FXStreet notes, "Technically, the 1 hour chart shows that the technical indicators are heading sharply higher and entering overbought territory, while in the 4 hours chart, the price is above its 20 SMA and more relevant, the 200 EMA now around 1.4480. Also, and in this last time frame, the technical indicators have entered positive territory for the first time this month, suggesting that the pair may advance further, particularly on a break above the mentioned daily high."

"Support levels: 1.4490 1.4450 1.4410
Resistance levels: 1.4520 1.4550 1.4585"


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