GBPUSD – British Pound Trend Overwhelmingly Negative04 September, 2015 by Aayush Jindal in Fundamental Analysis, GBPUSD, Market Analysis, Technical Analysis
- British Pound weakened a lot this week against the US Dollar, and traded towards 1.5220-00.
- GBPUSD looks poised for more losses as there are many hurdles for buyers on the way up.
- Japanese Labor Cash Earnings released by the Ministry of Health, Labour and Welfare posted an increase of 0.6% in July 2015, compared with the forecast of 2.1%.
- US nonfarm payrolls report will be released by the US Department of Labor, which is expected to post a gain of 220K jobs in August 2015.
GBPUSD Technical Analysis
The GBPUSD pair moved lower and almost tested the 1.5200 support area. There are a couple of bearish trend lines formed on the hourly chart, which are acting as a hurdle for the pair on the upside. As long as the pair is below the highlighted trend lines, more losses are possible.
On the upside, the 23.6% Fib retracement level of the last drop from the 1.5409 high to 1.5218 low may act as an initial resistance, as it is positioned with the first bearish trend line.
On the downside, the last low of 1.5218 is a support area, followed by the all-important 1.5200 handle.
Today is the NFP day, as the US nonfarm payrolls, which presents the number of people on the payrolls of all non-agricultural businesses will be released by the US Department of Labor. The forecast is lined up for an increase of 220K jobs in August. If there is no major disappointment, then we might witness good gains in the US Dollar.
Japanese Labor Cash Earnings
Earlier today, the Japanese Labor Cash Earnings, which shows the average income, before taxes, per regular employee and includes overtime pay and bonuses was released by the Ministry of Health, Labour and Welfare. The forecast was lined up for an increase of 2.1% in the sales in July 2015, compared with the same month a year ago. However, the result was on the lower side, as the Japanese Labor Cash Earnings rose 0.6%.
There was a revision for the last reading as well, which was pushed to -2.5% from -2.4%. Overall, the Japanese Yen buyers got no reason to take the currency higher in the near term.