GBP/USD minor recovery lacks conviction

FXStreet (Guatemala) – GBP/USD currently trading at 1.5110 with a high of 1.5129 and a low of 1.5004.

GBP/USD is attempting a minor recovery as the greenback gives way a little following the sell-off in cable last week post the Nonfarm Payrolls data released on Friday in the US shift that arrived with the largest rise this year at 271k while offering a 2.5% year-over-year increase in average hourly earnings – this was the most in six years. GBP/USD dropped from the 1.5380 resistance level that it had accumulated leading into the numbers until bears scored territory deep into the 1.50 handle marking a low of 1.5027.

Analysts at Brown Brothers Harriman explained how Sterling’s 2.5% slide against the dollar last week was its worst performance in eight months and noted how the divergence theme was in play with a dovish BoE. “The BOE may be further behind the Federal Reserve in raising rates than many had anticipated. The Bank of England’s Quarterly Inflation Report prompted investors to push out in time when it could raise interest rates.”

GBP/USD levels

Technically, 1.5000 a very key level that if breached opens up territory for 1,4860/78 as the 78.6% retracement of the move up from April that guards the 1.4568 April low. However, minor recoveries will target 1.5180 through to 1.5280 and ahead of the 200 SMA at 1.5306 on the hourly chart.

GBP/USD currently trading at 1.5110 with a high of 1.5129 and a low of 1.5004.

(Market News Provided by FXstreet)