Is there more to come?
1.2403 is the low on the data blow out and we’ve bounced to 1.2427, where we’re finding a bit of resistance.
GBPUSD 15m chart
The data was pretty much the icing on the cake for the moves we were already seeing. Talk about kick a man while he’s down. From here continue to watch what’s happening in the yen crosses as they are still leading the way. Given the data now, watch for a more muted reaction to any bounce in yen pairs, in the pound. EURGBP is the pair most likely to keep benefitting out of this. We’ll see some resistance there at 0.8580, then 0.8600 will be the main hurdle for that, followed by a stronger looking 0.8630/40 area.