Last Friday the major currencies including the pound strengthened significantly against the USD amid negative Non-Farm Payrolls data. The number of people employed in non-agricultural sectors of the US economy fell to 126 thousand versus the forecast of 246 thousand. The GBP/USD pair sharply rose reaching the resistance level of 1.4945.
It is a Bank holiday today in the UK due to the Easter holiday. The Business activity index in the manufacturing and service sectors of the USA will become known today. Investors are also waiting for the release of the minutes of the FOMC meeting in the middle of this week.
Weak data on the US key indices will allow the pair to reach the main resistance level of 1.4990; however after reaching this level the pair is likely to correct down and trade in the wide range of 1.4990-1.4870. In the medium-term, the pair will continue to be in the downtrend, therefore short positions will be preferable despite minor recovery of the British currency.
- Support levels: 1.4900, 1.4870, 1,4800, 1.4750, 1.4700 and 1.4640.
- Resistance levels: 1.4945, 1.4990, 1.5050, 1.5110, 1.5150, 1.5220 and 1.5270.