GBP/USD Clings to Daily Gains Above 1.4500

GBP/USD Clings to Daily Gains Above 1.4500

3 June 2016, 18:31
Roberto Jacobs

GBP/USD Clings to Daily Gains Above 1.4500

GBP/USD rally, which was triggered by ugly US nonfarm payrolls, faltered at the 1.4580 zone, giving way to a phase of consolidation over the last hours.

GBP/USD rose nearly 150 pips after data showed the US economy added only 38K new jobs in May, below the 164K expected, and marking its lowest level since September 2010. Separately, ISM non-manufacturing index also disappointed (52.9 vs 55.5 exp), contributing to USD weakness.

However, Cable found resistance at a high of 1.4580 and pulled back towards 1.4500. It has spent the last hours consolidating just above the psychological level. It was last trading at 1.4520, recording a 0.69%, or 100-pip, daily gain but still headed for a weekly drop.

GBP/USD levels to watch

In terms of technical levels, resistances are seen at 1.4580 (Jun 3 high), 1.4687 (May 27 high) and 1.4723 (May 31 high). On the other hand, 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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