GBP/USD analysis: Pound at its highest in over a month ahead of BOE
|GBP/USD Current price: 1.4147
- The Bank of England is largely expected to remain on hold.
- UK employment figures offset inflation's readings in terms of price reaction.
The Pound got a nice boost at the beginning of the European session, in the form of UK employment data. The number of people in work in the UK reached a new high of 32.2 million in the three months to January, according to official figures, leading to a record low in the unemployment rate of 4.3%. Additionally, wages advanced, closing the gap with inflation. Average hourly earnings excluding bonus came in a 2.6% as expected while excluding bonus jumped to 2.8%. Yearly inflation stands at 2.7% according to data released on Tuesday. The GBP/USD pair jumped traded as high as 1.4078, ahead of the Fed, breaking higher and reaching the 1.4140 region afterward, to end the day at its highest since early February. The kingdom will release February Retail Sales this Thursday, seen up monthly basis 0.4%, but more relevant, the BOE will have its monetary policy meeting. The central bank is largely expected to remain on hold, but surely the Minutes will grab market's attention, as investors will be searching for clues on future steps. In the meantime, the pair broke above the roof of the daily ascendant channel and holding at daily highs, a sign of strong buying interest. The pair, however, advanced over 150 pips daily basis, and some consolidation or a minor downward corrective movement can't be discarded. Technically, more gains could be expected according to the 4 hours chart, as the price is far above a bullish 20 SMA, while the RSI indicator maintains its bullish slope, despite being in overbought territory.
Support levels: 1.4100 1.4060 1.4010
Resistance levels: 1.4190 1.4230 1.4265
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.