The GBP/USD traded sideways during last week’s trading session and ended the week with an indecision Doji candle stick pattern on the weekly charts. Price failed to break 1.67666 resistance (last week’s high) as a hammer rejection pattern was formed on the 4hours charts on Friday’s U.S trading session.
Supply in the pair was fueled after data showed that the U.S. employment report for February was stronger than forecast, bolstering the outlook for the economic recovery. The U.S. economy added 175,000 jobs in February, the Labor Department reported, well above expectations for 149,000 new jobs. The unemployment rate ticked up to 6.7% from 6.6% in January, as more people joined the workforce.
Short term bias remains on the downside as more declines to 1.65826 support is expected as long as 1.67841 resistance holds. However a break of resistance 1.67841(last week’s high) could see further rise to 1.68213(February 17, 2014 high) and a break of it could see further demand to 1.7000 psychological zones in the long term picture.
Key economic indicators to watch out for in the coming week is the Manufacturing production and Inflation Reports scheduled to be released on March 11, 2014.