GBPUSD hits new 2018 high and could extend rally if UK jobs data beat forecasts
|Cable continues to trend higher and hit new post-Brexit recovery high at 1.4369 on Tuesday as extension of Monday’s strong rally broke above previous 2018 high at 1.2344 (25 Jan).
Pound remains supported on rising expectations of BoE’s rate hike next month and could extend rally after triggering stops above 1.4344.
Immediate focus turns at psychological 1.4400 barrier, but bulls could stretch further and test target at 1.4508 (FE 100% of the wave C from 1.3965).
Daily techs are in full bullish setup and supportive, but overbought RSI and slow stochastic warn of pullback.
Corrective easing would offer better buying opportunities, with solid support at 1.4244 (former highs of 26/27 Mar) and rising 10SMA (1.4181) expected to contain extended dips.
UK jobs data are the key event today and could provide fresh boost for the pound on better than expected outcome. Focus is on average earnings (Feb f/c 3.0% vs 2.8% in March) and release at/above forecasted level would be supportive.
UK unemployment rate is expected to remain unchanged at 4.3% while jobless claims are expected to rise in March (13.3K f/c vs 9.2K in Feb.
Res: 1.4380; 1.4400; 1.4450; 1.4508
Sup: 1.4344; 1.4277; 1.4244; 1.4181
Interested in GBPUSD technicals? Check out the key levels
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.