GBP/USD analysis: steadily ranging ahead of UK employment figures

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3557

Selling interest still strong around the 1.3600 level.
UK wages' growth expected to have advanced modestly in the three months to March.

The GBP/USD pair traded as high as 1.3607, benefiting from broad dollar's weakness, although a certain cautious tone prevails around the UK currency, after the latest batch of poor local data and BOE's dovish decision on monetary policy. The kingdom will release its latest employment data early Tuesday, with the unemployment rate seen steady at 4.2% in the three months to March, and wages' growth excluding bonus up 2.9% from the previous 2.8%. The uptick in wages will hardly be a game-changer but will support the case of delayed rate hikes in the UK. The economy is expected to have added 7.5K new jobs in April. Technically, the pair has been confined to a tight trading range pretty much since the month started, with a 4-month low in the way at 1.3459, and selling interest capping rallies on attempts to advance beyond the 1.3600 level. The current stability could be broken with the employment report, but directional follow-through afterward is still unclear, as the Pound has no fundamental background to rally, while the dollar is on a downward corrective stage. In the 4 hours chart, the pair presents a neutral-to-positive stance, trading above a flat 20 SMA, while the Momentum indicator heads north above its mid-line, while the RSI losses upward strength and currently consolidates around 53.

Support levels: 1.3550 1.3500 1.3460

Resistance levels: 1.3610 1.3660 1.3700

View Live Chart for the GBP/USD

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.

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