GBP/USD analysis: Pound's rally to face a couple of macroeconomic challenges

GBP/USD Current price: 1.4327

  • UK employment data foresaw encouraging, attention centered on wages' growth.
  • USD to remain under pressure amid political jitters denting its attractive.

The GBP/USD pair trades a handful of pips below 1.4345, the highest level achieved post-Brexit referendum, with dollar's broad weakness being the main reason behind the rally. Up for a seventh consecutive day, Pound's strength will suffer a couple of major challenges from the macroeconomic front these upcoming days, in the form of employment figures this Tuesday, and inflation ones on Wednesday. Average hourly earnings are expected to have advanced from previous readings, with wages, excluding bonuses, seen up 2.8% in the three months to February. Inflation, on the other hand, is seen decreasing, and both combined should mean decreasing pressure on the BOE to raise rates, which may have a contrarian effect on Pound, sending it lower when macroeconomic data improves. In the 4 hours chart, technical indicators have lost upward strength in overbought levels, with the RSI pretty much consolidating and the Momentum retreating. Nevertheless, and with the pair holding near its daily high, the risk is lean to the upside, with the next big resistance being 1.4345, January's monthly high.

Support levels: 1.4180 1.4150 1.4115

Resistance levels: 1.4295 1.4345 1.4390

View Live Chart for the GBP/USD

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.