The strong US Non-Farm Payrolls not only sends GBP/USD below the “Scottish low” of 1.6050 but also below the round number of 1.60.
What are the next lines below?
A first attempt to move lower stopped just above 1.60, but a second move already pushed through. At the time of writing, the new low is 1.5987.
1.5910 could provide some initial support, if the break is confirmed. 1.5850 worked as support and as resistance several times in the past. Really strong support awaits only at 1.56.
On the upside, we find 1.6050 and 1.6160. For more, see the pound dollar forecast.
Here is how the fall looks on the chart:
The Bank of England convenes next week, and no change is expected from Carney and his colleagues. A lower exchange rate means that inflation could rise so that a rate could come earlier. In the meantime, the dollar is mighty strong.
In our latest podcast, we discuss the big events for October:
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