May 6, 2013
GBP/USD - Faltered at 1.5605 Resistance - Could be a top for now.
FXstreet.com (London) - GBP lost more steam after stronger than expected US NFP numbers on Friday. NFP rose 165k in April, against a market expecting numbers to come in lower with 140 new jobs created. There were 64k and 50k upward revisions to Feb and Mar respectively. ISM, covering trends in the services sector fell to 53.1 in April from Marches 54.4, and came in as the lowest reading since mid 2012, although remaining above the expansion level of 50. The subsequent price action left GBP well beyond its previous attempts at 1.5605 resistance having attempted this level twice last week. Judging by the rising channel formed in March, 1.5605 forms a top and resistance seems strong here. There is a Bank holiday in UK today, and without much in the way of activity, GBP may remain consolidated here, 1.5550-80. Bids have appeared at the 100 day MA 1.5544 with a low of 1.5480 which has formed some support in this rising channel for GBP. 1.5465, the April low may prove to offer a level for sell stops and 1.5420 would offer further support there after.