The GBP/USD has been consolidating since mid-November when it made a low on the year around 1.5585. After today’s NFP data, the pair looks like it is ready for bearish continuation as it cracks the consolidation support into a new low on the year.
NFP data at 321K for November bested the 231K forecast and October’s 243K reading. Average hourly earnings also grew 0.4%, exceeding forecasts of around 0.2%, and October’s 0.1% print. Job growth and hourly earnings growth is giving the USD a boost and the GBP/USD is cracking a consolidation range support. A hold below 1.5650 would maintain a bearish outlook, while a break above 1.57 at this point might invalidate it.
To the downside, we have the 1.55 handle, then the 1.5427 support/resistance pivots from 2010 in sight.
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