GBP/USD Forecast: holding ground, downside limited
|The GBP/USD pair trades near its daily low of 1.2300 following the release of the UK's latest employment report. The numbers were quite positive, as jobless claims fell by 10.1K in December, against a 3.7K rise expected, while there was a strong advance in wages, as Average hourly earnings, excluding bonus, rose 2.7% in the three months to November. The unemployment rate held at 4.8%, against expectations of an uptick to 4.9%. Nevertheless, the positive figures failed to trigger Pound's demand, still retreating from the 1.2415 posted late Tuesday.
Ahead of the release of US inflation figures, the 4 hours chart shows that the positive tone persists despite the pair eased over 100 pips so far today, given that the price is holding around a horizontal 200 EMA whilst holding above a bullish 20 SMA. Technical indicators in the mentioned time frame hold near overbought readings, trying to resume their advances, but still unable to confirm further gains.
Further slides below 1.2290 show lead to a continued decline towards the 1.2250 region first, en route to 1.2210, whilst above 1.2360 the pair will likely retest the mentioned weekly high at 1.2415.
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.