GBP/USD outlook: Sterling was lifted by upbeat UK jobs data and expectations for hawkish BoE

Slobodan Drvenica Windsor Brokers

GBP/USD

Cable extends rebound from new 2022 low into third straight day and accelerates recovery on Tuesday after upbeat jobs data.

UK unemployment fell to 3.7% in March, the lowest since 1975, improving the sentiment on rising bets for BoE 50 basis points hike on June 16 policy meeting that would lift interest rate to 1.5%.

Markets focus Wednesday’s UK CPI data on Wednesday with inflation expected to rise to a 40-year high at 9.1% in April from 7% in March that would add to BoE’s hawkish expectations and give fresh boost to the pound.

Improving daily technical studies support the notion as 14-d momentum is in steep ascend and approaching the midline which divides positive and negative territory and RSI is heading north after reversal from oversold zone.

Fresh advance broke above 10DMA (1.2348) and extended towards pivotal barrier at 1.2512 (Fibo 38.2% of 1.3090/1.2155 bear-leg / falling 20DMA) with firm break here to allow for stronger correction.

Broken 10DMA offers solid support and the price should hold above here to keep fresh bullish bias.

Res: 1.2512; 1.2534; 1.2600; 1.2622.
Sup: 1.2411; 1.2375; 1.2348; 1.2311.

Interested in GBP/USD technicals? Check out the key levels

1. R3 1.2473
2. R2 1.2401
3. R1 1.236
PP 1.2289
1. S1 1.2247
2. S2 1.2176
3. S3 1.2135

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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