GBP/USD analysis: bullish trend continues with the pair determine to surpass 1.40
|GBP/USD Current price: 1.3978
- UK data back Pound's strength, exacerbated by persistent dollar's weakness.
- UK employment data to take center stage this Wednesday, wages seen unchanged.
The GBP/USD pair surged to 1.4026 in the US afternoon, as dollar's sell-off resumed after Wall Street's opening. The Pound was already strong ahead of the event, as dollar's relief rally that drove the pair to a daily low of 1.3915, started to give up after the release of encouraging UK data and buying interest re-surging at lower levels. The latest CBI Industrial Trends Survey showed that manufacturing keeps strengthening in the kingdom, as optimism improved at an above-average pace this month. Additionally, public sector net borrowing fell sharply in December, helped by a large credit from the EU and surging VAT receipts. This Wednesday, the UK will release its latest employment figures, with the unemployment rate seen steady at 4.3% in the three months to November. Average earnings for the same period are expected to remain unchanged, which would be sort of a disappointment, although this time maybe not that big, as inflation in the UK has finally begun to ease. Technically, the 4 hours chart for the pair shows that it held above a bullish 20 SMA, meeting buying interest around it earlier on the day, while technical indicators hold within positive territory, losing upward strength as the pair retreats sub-1.40, anyway maintaining its bullish stance.
Support levels: 1.3800 1.3770 1.3735
Resistance levels: 1.3865 1.3900 1.3945
View Live Chart for the GBP/USD
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