FXstreet.com (Barcelona) - The Sterling has risen today's European session around 140 pips against the Greenback from 1.06525 to break MA55 houlry chart at 1.6620 and hit intra-day high at 1.6665 in the last hour. Currently the pair is trading around 1.6650/60, 0.70% above today's opening price action at 1.6535, in the previous minutes of the US National Employment report.
Next resistance levels lie at 1.6695 (Dec 2 high) and 1.6725 (Nov 25 and 26 high). On the downside, the pound might find resistance at 1.6600 and below here, 1.6550 (Dec 2 low) and 1.6515 (session n low).
The Bureau of Labor Statistics of the US Department of Labor will release today at 13:30 GMT the US national employment report, with NFP and Unemployment data. Market sees a nfp better reading of -111K in November from -190k in October, But unemployment rate unchanged at 10.2% in November.
Seems that the ADP private sector job losses at -169k, the lowest since August 2008 and the 4-week average initial jobless claims at its 1 year low level below 500k could fueled the expectations of better reading in November than October.
The Kshitij Consultancy Service Team comments: Cable has risen and is now testing the 61.8% retracement of the yesterday's fall from 1.6721 to 1.6520 at 1.6644. If broken, it may rise towards 1.6744 during the US session. Today's close above 1.6689 would still keep alive chances of a fall thereafter next week. However, if it manages to close above that we might be headed for an even more volatile days ahead with a bullish bias targeting 1.6900.
Kshitij concludes: But given the strong Resistance at 1.67 (21-month MA) and Support at 1.64 (8-month MA) on the monthly charts, we would expect that the same would be honoured. A lot would depend on today's close.