GBP/USD: Pound loses attractive post-tricky employment data
|GBP/USD Current price: 1.3163
- UK employment figures positive, but people at work fell by the most in over two years.
- US Retail Sales and Consumer Price index for October eyed.
The GBP/USD pair was flirting with the 1.3200 level ahead of UK employment figures, amid dollar's broad-based weakens, peaking at 1.3212 before plummeting to a session low of 1.3133. At first glance, UK figures were encouraging, as average hourly earnings rose by 2.2% both, including and excluding bonus, with the first slightly above expected in the three months to September. Previous wages figures were revised higher, something that coupled with yesterday's inflation figures should be a shy sign of improvement. Also, the number of unemployed people claiming for benefits during October was of 1,100, better than the 2.3K expected. However, the number of people in work fell by 14,000 the most in over two years. Also, the number of people not working, neither seeking for a job, rose by the most in nearly eight years.
Ahead of the US session, and the release of American retail sales and inflation October data, the pair trades around 1.3160, flat for the day, and losing upward momentum according to technical readings, as in the 4 hours chart, the pair retreated from the 61.8% retracement of its latest decline, and struggles now around the 50%. Technical indicators in the mentioned time frame are gyrating slowly lower but still above their mid-lines, whilst the 20 SMA converges with the next Fibonacci level around 1.3140. Below this last, the next intraday supports and probable bearish targets are 1.3100 and the 1.3060 price zone. To the upside, the 1.3200/20 price zone has proved strong in the past, with gains beyond it required now to consider an extension upward towards the 1.3270 price zone.
Support levels: 1.3140 1.3100 1.3060
Resistance levels: 1.3220 1.3270 1.3310
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