The British pound is giving in to the US dollar, alongside almost all currencies. GBP/USD is trading at levels last seen in the week of June 28th 2010. The fresh low was at 1.4884. Cable has recovered a bit, but isn’t close to 1.50 anymore.
The United States reported an excellent jobs report: +236K, significantly more than the already higher expectations. Also the unemployment rate dropped to 7.7%, the lowest since December 2008, albeit partially aided by a lower participation rate.
The next big level for cable is 1.48, which worked in both direction in mid-2010. This is followed by 1.4611. On the topside, 1.50 is the clear line of resistance, despite the recent battles. 1.5120 is next.
For more on the British pound, see the weekly GBP to USD forecast.
The pound was vulnerable despite a positive services PMI figure early in the week.
Also EUR/USD was smashed on the Non-Farm Payrolls: it fell below 1.30 and challenged the triple bottom.
