GBP/USD analysis: challenging 1.4000 post Fed
|GBP/USD Current price: 1.4002
- UK unemployment rate and wages' growth disappointed.
- BOE's Carney reiterated its hawkish stance in his testimony before the Parliament.
The Pound fell to 1.3904 against its American rival early London session, following the release of a mixed UK employment report. The unemployment rate rose to 4.4% from the previous 4.3%, and while a 0.1% uptick may sound irrelevant, the number is actually indicating that the number of people out of work in the kingdom rose at the fastest pace in almost five years, after almost two years of continuous declines. Average weekly earnings excluding bonuses increased by 2.5%, beating the previous and the forecast of 2.4%, but continues lagging before inflation, failing to impress investors. The GBP/USD pair bounced from the mentioned low as the dollar lost its strength while BOE's Governor Carney testified before a Parliamentary special committee on inflation, reiterating the hawkish stance seen within the central bank meeting, extending its gains post-FOMC's Meeting Minutes. This Thursday, the UK will release its second estimate of 4 GDP, expected unchanged at 0.5% and will therefore have a limited impact on the pair, unless it comes with a notable divergence. In the meantime, the 4 hours chart presents a neutral stance, as the pair is currently struggling with a directionless 20 SMA, while technical indicators were unable to surpass their mid-lines, heading into the Asian session flat around their mid-lines. 1.4025 is the immediate resistance, with gains beyond the level favoring an extension up to the 1.4100 region.
Support levels: 1.3965 1.3920 1.3880
Resistance levels: 1.4025 1.4060 1.4100
View Live Chart for the GBP/USD
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