The Pound retreats further from the 1.4418 posted last Tuesday against the greenback, after the release of the UK March employment figures, which came in mixed, as unemployment rose by 6.7K against the expected 10K decline, the unemployment rate remained unchanged at 5.1%. Wages slowed down well beyond expected, as average earnings including bonus, in the three months to February, grew by 1.8% against the 2.1% previous and the 2.3% expected.
The GBP/USD pair fell down to 1.4343 right after the news, but bounced back some, indicating limited buying interest surrounding the greenback. Nevertheless, markets are quieter, having stabilized after the early week movements.
Technically, the 4 hours chart shows that the positive tone prevails, given that the 20 SMA continues heading north below the current level, whilst the Momentum indicator presents a mild bullish slope well above its 100 level. The RSI indicator retreated partially from overbought readings, but the decline is merely corrective and lacks strength.
Should the price accelerate below the mentioned low, the downward corrective move can extend towards the 1.4280/90 region, whilst below this last, 1.4240 is the next bearish target. Above 1.4385 on the other hand, the pair can retest yesterday's high, whilst beyond this last, the rally can extend towards the 1.4460/70 price zone.
View the live chart of the GBP/USD
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