USD selling gathered pace in the NY session and the data had very little to do with it.
Yes, the ISM non-manufacturing employment index dipped below 50.00, but still the sell-off was blamed to Romney’s comments.
Cable managed to clock an intraday high of 1.4190 before falling back to 1.4125 and moving back again to 1.4160.
The key area to watch out for is 1.4154-1.4165.. here is why
The above chart shows we have two key Fibo levels to watch out for
The hourly chart also shows an inverted head and shoulder breakout, which provides target of 1.4165
To conclude – the area around 1.4154-1.4165 is a crucial one & only a convincing break above the same after tomorrow’s payrolls report would convince me to go Long Sterling.
From what I see now on charts (after weak UK PMIs released over the week), the odds of a pair trapping bulls are high. Watch out of a sudden drop to below 1.41 levels and may be a drop further to 1.4032 if the NFP prints super strong tomorrow.