GBP/USD analysis: stable around 1.3160, downward potential limited for now
|GBP/USD Current price: 1.3166
- UK mixed employment data weighed on Pound.
- UK Retail Sales expected to have fallen in October.
Action around the GBP/USD pair took place during European trading hours, with the pair trading within a 100 pips' range at the time of the release of UK employment data. Dollar's persistent weakness helped the pair reach a daily high of 1.3212, but then plunged to the 1.3130 region, as impressive UK employment headlines weren't enough to offset the fact that the number of people in work fell by the most in over two years, while the number of people not working, neither seeking for a job, rose by the most in nearly eight years. However, average hourly earnings, with and without bonus, both rose by 2.2%, while the unemployment rate remained steady at a multi-decade low of 4.3%. The pair finally settled in the 1.3160 region, where it spent the rest of the day. This Thursday, the UK will release October Retail Sales data with the market anticipating a sharp decline when compared to previous month. From a technical point of view, the pair has settled around the 50% retracement of its latest daily slide, and with intraday readings presenting a neutral-to-positive stance, as the price is above a flat 20 SMA, while technical indicators lost directional strength, but hold above their mid-lines. The pair would need to surpass the 1.3220 level to look a bit more constructive to the upside, while below 1.3100, the risk will lean towards the downside.
Support levels: 1.3130 1.3095 1.3060
Resistance levels: 1.3185 1.3220 1.3260
View Live Chart for the GBP/USD
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