GBP/USD tests yesterday's low post-data release
Sterling was sold ahead of the data, and the naysayers have it right this time as labour report was rather soft. The unemployment rate ticked up for the first time since August 2016, and the employment change figures were rather disappointing.
Wages were the only decent figures and they came in within expectations, which says a lot about how the overall report went. But either way, it just means we're stuck with the scenario that we've been in - just fast-forward by one month.
Nothing else has changed in the overall sense, but it does dampen the prospects of a BOE rate hike by the slightest bit.
Anyway, cable fell to a low of 1.3928 after the data was released, but has since bounced back up now to 1.3940. The low for the day is a test of yesterday's lows but also a test of the 61.8 retracement level on the hourly chart at 1.3932.
Also, Mike pointed out in his orders earlier there are bids lying at 1.3935, so that's going to act as another line of support for the pair as well.
If buyers are able to hold above here, a retest of the 200-hour MA isn't far away. But again, a rather soft report - and you also gotta look out for that dollar, in case it wants to go on a run again later in the session.
