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
Author
Valeria Bednarik
FXStreet
Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.
