GBPUSD hits new 2018 high and could extend rally if UK jobs data beat forecasts

Slobodan Drvenica Windsor Brokers

GBPUSD

Cable continues to trend higher and hit new post-Brexit recovery high at 1.4369 on Tuesday as extension of Monday’s strong rally broke above previous 2018 high at 1.2344 (25 Jan).
Pound remains supported on rising expectations of BoE’s rate hike next month and could extend rally after triggering stops above 1.4344.
Immediate focus turns at psychological 1.4400 barrier, but bulls could stretch further and test target at 1.4508 (FE 100% of the wave C from 1.3965).
Daily techs are in full bullish setup and supportive, but overbought RSI and slow stochastic warn of pullback.
Corrective easing would offer better buying opportunities, with solid support at 1.4244 (former highs of 26/27 Mar) and rising 10SMA (1.4181) expected to contain extended dips.
UK jobs data are the key event today and could provide fresh boost for the pound on better than expected outcome. Focus is on average earnings (Feb f/c 3.0% vs 2.8% in March) and release at/above forecasted level would be supportive.
UK unemployment rate is expected to remain unchanged at 4.3% while jobless claims are expected to rise in March (13.3K f/c vs 9.2K in Feb.

Res: 1.4380; 1.4400; 1.4450; 1.4508
Sup: 1.4344; 1.4277; 1.4244; 1.4181

Interested in GBPUSD technicals? Check out the key levels

1. R3 1.4493
2. R2 1.4419
3. R1 1.4379
PP 1.4305
1. S1 1.4265
2. S2 1.4191
3. S3 1.4151

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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