FXstreet.com (Barcelona) - The Sterling has lost its previous profits against the Greenback on the back of the bad employment data released today. After rising from 1.5970 and hitting 1.6110 as intra-day high, the GBP/USD has retreated below 1.6000 against and it has tested MA55 hourly chart level at 1.5970 again.
Despite slide, Cable is posting daily gains yet, currently the pair is trading around 1.5990/1.6000, 0.40% above today's opening price action at 1.5930.
According to the FastBrokers Research Team, the GBP/USD pops in reaction to weak U.S. jobs data: The Cable's response is understandable considering the Dollar's December rally was driven by a turnaround in employment data. It will be interesting to see if the Cable can extend its intraday gains due to the level of anticipation prior to today's data release. We're witnessing Dollar weakness across the board at the moment while the Pound exhibits a relative strength, as highlighted by a dip in the EUR/GBP
FastBrokers concludes: The psychological 1.60 level is serving as technical once again along with our multiple uptrend lines and 1/07 lows. As for the topside, the Cable still faces multiple downtrend lines along with January highs. Our 4th tier downtrend line could serve as a key technical barrier since it runs through 12/16 highs. Meanwhile, our 1st tier uptrend line separates the Cable from a retest of December lows.