GBP/USD lower post US data

FXstreet.com (London) - GBP/USD had been oscillating pre data between 1.5450 and 1.5485 post FOMC overnight and better than expected UK Retail sales figures which hit the wires this morning and US Initial Claims.

GBP/USD on US data

GBP/USD was sat between 1.5475/85 pre data release and is moving to the downside after a series of numbers came out overall better than expectations. CB Leading Indicator came in slightly worse at 0.1 % vrs expectation 0.2%, Existing Home Sales Change came in much better at 4.2 % vrs expectation 0.6%, Philly Fed Manufacturing came in much higher 12.5% vrs expectation -0.2


The GBP/USD now trades between 30/40 pips lower on the release.

Sterling has already dropped from 1.5668 to 1.5460 and drifted lower still until 1.5430 after the release of the FOMC overnight into the European session. This fall came in with the statements from the FOMC. While there were no changes to the current pace of QE, a comment was made as follows: "the downside risks to the outlook for the economy and the labor market as having diminished since the fall”, which sent the market in a ‘risk-off’ flurry again in broad based dollar rally. In all, the statement was a little more upbeat on the economy but showed little concern about inflation, except there being a more upbeat unemployment rate which might bring in a rate hike in a little closer.

GBP/USD in slightly more negative territory

GBP/USD is moving closer to EMA50, targeting 1.5490 resistance. Support below remains at EMA50 above the figure and the 61.8% fib at 1.5377 acts as next line, with 1.5307 as 50%fib, targeting in broader terms 1.5008 and 1.4833 to the down side.