GBP/USD: Wages´ growth saved Pound, for now
|GBP/USD Current price: 1.3350
- UK employment headlines disappointing, but wages grew more-than-expected.
- GBP/USD still ranging at the lower end of the weekly range ahead of US data.
UK employment data threw a lifeline to the Pound that bounced from the 1.3300/10 lows region against the greenback, up to 1.3367 right after the release. The report was quite mixed, with the Unemployment rate in the three months to October steady at 4.3% against expectations of 4.2%, while the number of unemployed people during November reached 5.9K, as October number was upwardly revised to 6.5K from the previous estimate of 1.1K. However, average hourly earnings excluding bonus rose to 2.3% from previous 2.2% a bit of relief after yesterday's inflation figures.
The pair was unable to extend its gains, and in fact retreated, now hovering around 1.3350 as the market waits for the US session, which will bring November inflation figures and the Federal Reserve decision. The Sterling has been lately reluctant to react to USD-related headlines, yet this time could be different, particularly if the news are positive for the greenback, due to ongoing Pound's weakness.
From a technical point of view, the pair is neutral, with the downward momentum easing, as the pair keeps bouncing from its 200 EMA, while technical indicators recover, but still within negative territory. The 20 SMA in the mentioned chart heads lower in the 1.3360 region, although a stronger resistance comes at 1.3385, where the pair has the 50% retracement of the latest bullish run. It would take an advance above it to confirm additional advances, toward 1.3430, while below 1.3300, the decline will likely accelerate later today.
Support levels: 1.3300 1.3260 1.3220
Resistance levels: 1.3385 1.3430 1.3465
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.