Pound rebounds vs. dollar on correctional movements

The GBPUSD rebounded on Monday after dropping for a five straight sessions as the dollar faced profit taking by investors.  

The pair fell sharply on Friday after U.S. nonfarm payrolls signaled 295,000 jobs were created last month from 257,000 in January, surpassing forecasts of 240,000 jobs.

There buoyant labor market figures raised speculations the Fed would undertake its first interest rate hike earlier than expected.

On the other hand, the BOE decided this last week to keep the interest rate unchanged, raising expectations there will be no rate hike before next year.

As of 09:17 p.m. GMT, the GBPUSD traded around 1.5119, where the session’s low was hit at 1.5031 and the high was touched at 1.5122.

The GBPUSD resumed its fall after the breach of Daily SMA 50, yet it is currently doing a retest to the support line depicted on the chart.  

Last week, the GBPUSD plunged 2.42 percent, shaving most of the gains generated over the previous couple of weeks.

Correctional movements seem to be predominant today amid the absence of economic data from major economies.