A pair of GBP / USD yesterday tried to pass the resistance at 1.40, but managed to overcome this level only today. Moreover, now the price has already tested the mark 1.41. The main factor behind the growth for the currency is the weak dollar, but today the situation will change, as the focus is on statistics from the UK labor market, which will probably determine the course of trading today.
The indicators are moderately negative. Despite investors’ concerns, the average wage growth for the reporting month did not slow down and remained at the level of 2.5%, as the experts predicted. This is a positive factor given the expectations of the worst data. The unemployment rate remained at 4.3%, the rate has remained unchanged since September 2017.
Disappointed investors only a strong increase in the number of applications for unemployment benefits. Actual growth was 8.6K with a forecast of 5.4K, but for now investors ignore this fact, and the GBP / USD currency pair continues to grow. In general, the published data may cause the development of local correction in the near future, but at the same time one can hardly expect a big sell-off, especially against the background of a weak dollar. With such indicators on the labor market, the British pound may well be fixed in the range of 1.40-1.41.
On the chart, we still do not have any reversal signals. Full dominance of buyers and the continuation of the bullish trend with an attempt to break through the level of 1.41, which, however, may fail. If in the coming hours the pair does not consolidate above 1.41 for this currency pair, it will be possible to count on the development of a corrective movement in the direction of the broken through level of 1.40 today, but the uptrend dominates in the medium term.
Review prepared by Fort Financial Services analytical department. Follow our publications!