The pair was moving above its yesterday’s pivot point in the Asian session but bulls didn’t seem to be present in the pair once the Final GDP data came out in the European session, leaving the pair play around well below its critical level of 1.3030. Later on in the U.S session, the pair fell drastically from 1.2985 till 1.2890 as the ECB president highlighted that economic growth needs to be expanded and certain accommodative measures may be taken as long as they are required.
Currently the pair is hovering at the level of 1.2899 where a move below its yesterday’s low of 1.2880 could take the pair further down till 1.2854 and then 1.2827. Whereas, a sustainable move above its today’s pivot point at 1.2937 could create bearish consolidation and may let the pair go on to test 1.2964 and strong resistance level of 1.2992 where sellers are expected to enter the market again.
The key economic indicators to watch for today are the German factory orders and the U.S employment numbers.
Pound under Severe Pressure
Sterling is under severe pressure and is constantly failing its attempt to enter the bullish channel and this happened yet again on Thursday where the new BoE governor Mr. Carney spoke about the current economic circumstances and hinted that the growth may get stagnant in near future. The currency was dragged down sharply by the bears where it fell by more than 210 points and is seems to be keeping a distance from its psychological level of 1.5000.
The pair bounced back from 1.5020 where it is currently moving at 1.5044 where a move below 1.5020 could create an alarming situation for the pair as it would then target 1.4988 and 1.4952. If it retraces today and moves above 1.5059 then its next targets would be 1.5130 and 1.5166.
Gold remains indecisive as Job numbers are due
As mentioned in previous reports that the metal may not give a one-sided move this week until the U.S session on Friday, as the U.S unemployment data and the NFP employment change numbers are due. The data could have a serious impact on gold prices as the investors may get a clear direction for the next few weeks as to what direction the metal would be heading to. Moreover, the U.S stock market investors are also eagerly waiting as the move could be the next big move after the previously held FOMC meeting by Ben Bernanke that shook up the market badly.