2 Jul 2015
GBP/USD drops below 1.56
FXStreet (Mumbai) - The GBP/USD pair has dropped below the 1.56 handle as the bid tone on the USD remains strong ahead of the non-farm payroll report in the US.
Rejected above 1.5620
The pair once again ran into offers above 1.5620 even though the UK construction PMI in June rose to multi month highs. The spot has struggled since the Asian session to take out 1.5620 levels. Moreover, the US dollar is being favoured as the payrolls report is expected to show the labour market continued to strengthen in June.
A Major adjustment in the FX market positioning could be seen post the release of the payrolls report as the US markets remained close on Friday.
GBP/USD Technical Levels
The pair currently trades at 1.5594. The immediate resistance is seen at 1.5638 (38.2% Fib of June rally), above which gains could be extended to 1.5667. On the flip side, a break below 1.5581 could push the pair down to 1.5549 (50% Fib R of June rally).
Rejected above 1.5620
The pair once again ran into offers above 1.5620 even though the UK construction PMI in June rose to multi month highs. The spot has struggled since the Asian session to take out 1.5620 levels. Moreover, the US dollar is being favoured as the payrolls report is expected to show the labour market continued to strengthen in June.
A Major adjustment in the FX market positioning could be seen post the release of the payrolls report as the US markets remained close on Friday.
GBP/USD Technical Levels
The pair currently trades at 1.5594. The immediate resistance is seen at 1.5638 (38.2% Fib of June rally), above which gains could be extended to 1.5667. On the flip side, a break below 1.5581 could push the pair down to 1.5549 (50% Fib R of June rally).