GBP/USD turns sharply lower after US durable goods orders
|The GBP/USD pair once again ran through offers and retraced sharply to 1.2220 region despite of mixed US economic releases.
Data released from the US showed durable goods orders contracted by 0.1% in September versus a growth of 0.1% expected and 0.3% recorded in the previous month. On the other hand, core durable goods orders (excluding transportation) matched market expectations and registered a growth of 0.2%, up from 0.1% growth in August.
Meanwhile, US initial jobless claims for the week ending October 21 fell less-than-expected and came-in at 258K, down from previous week's 261K but higher than consensus estimates pointing to a reading of 255K. However, continuing claims to week ended October 14 unexpectedly fell to 2039K from previous 2054K and 2068K estimated.
Although the data points either fell short or matched expectations, it did little to alter market expectations that the US Federal Reserve remains on the path of raising interest rates by the end of this year and provided some bullish impetus for the US Dollar.
However, upbeat UK GDP print, released earlier today during European session, seems to be limiting further downslide and the pair held above 1.2200 handle.
Next in focus would be pending home sales data, but the key determinant of the pair's next leg of directional move would be Friday's US GDP print for the third quarter of 2016.
Technical levels to watch
From current levels, 1.2200 handle (session low) is likely to protect immediate downside, which if broken is likely to accelerate the slide immediately towards 1.2180 horizontal support before the pair drops to 1.2150 support area (yesterday's low).
On the upside, 1.2250 area remains immediate hurdle, which if conquered, leading to a subsequent momentum above session peak resistance near 1.2270, might trigger a fresh bout of short-covering and assist the pair to surpass 1.2300 handle towards testing its next major hurdle near 1.2330 region.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.