Very strange goings on there as we were dropping ahead of the release yet jumped 40 odd pips when the numbers hit. We keep seeing this frontrunning of the data and it stinks but I wonder if they got burnt this time with that pop. Maybe someone went fishing for the fishermen. Anyway that’s all conjecture which doesn’t alter the prices so we need to look at what’s going on now.
As I said in the preview cable has been battered down below 1.63 on the worse data. 1.6269 is the low so far and it just nudged through the August 2009 broken resistance line at 1.6270. If it holds another test then we could see it recover up to 1.63 with resistance coming in around the big figure and 1.6305/10.
GBP/USD h4 chart 05 02 2014
Look to the 100 dma at 1.6239 if the line goes here.