GBP/USD analysis: steadily ranging ahead of UK employment figures
|GBP/USD Current price: 1.3557
- Selling interest still strong around the 1.3600 level.
- UK wages' growth expected to have advanced modestly in the three months to March.
The GBP/USD pair traded as high as 1.3607, benefiting from broad dollar's weakness, although a certain cautious tone prevails around the UK currency, after the latest batch of poor local data and BOE's dovish decision on monetary policy. The kingdom will release its latest employment data early Tuesday, with the unemployment rate seen steady at 4.2% in the three months to March, and wages' growth excluding bonus up 2.9% from the previous 2.8%. The uptick in wages will hardly be a game-changer but will support the case of delayed rate hikes in the UK. The economy is expected to have added 7.5K new jobs in April. Technically, the pair has been confined to a tight trading range pretty much since the month started, with a 4-month low in the way at 1.3459, and selling interest capping rallies on attempts to advance beyond the 1.3600 level. The current stability could be broken with the employment report, but directional follow-through afterward is still unclear, as the Pound has no fundamental background to rally, while the dollar is on a downward corrective stage. In the 4 hours chart, the pair presents a neutral-to-positive stance, trading above a flat 20 SMA, while the Momentum indicator heads north above its mid-line, while the RSI losses upward strength and currently consolidates around 53.
Support levels: 1.3550 1.3500 1.3460
Resistance levels: 1.3610 1.3660 1.3700
View Live Chart for the GBP/USD
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.