GBP/USD breaks above 1.3200 on UK jobs

  • Cable tested highs above 1.3200 on UK data.
  • UK’s Average Earnings rose 2.7% on a yearly basis.
  • Brexit remains the exclusive driver for Cable for the time being.

The buying interest is now picking up pace around the Sterling and is lifting GBP/USD back above the 1.3200 handle, or daily highs.

GBP/USD boosted by data, looks to Brexit

Cable picked up extra pace on Tuesday after UK’s Average Earnings inc. Bonus rose at an annualized 2.7%, surpassing initial estimates. In addition, the jobless rate stayed put at 4.0% in August.

Further data saw Claimant Count Change ticking higher by 18.5K, more than forecasted while the Employment Change dropped by 5.0K 3M/3M.

In the meantime, Brexit headlines remains poised to dominate the sentiment around the British Pound, with the Cabinet expected to meet today ahead of the EU’s Brexit working dinner tomorrow.

GBP/USD levels to consider

As of writing, the pair is gaining 0.36% at 1.3201 facing the next hurdle at 1.3258 (high Oct.12) seconded by 1.3299 (high Sep.20) and then 1.3364 (high Jul.9). On the downside, a breakdown of 1.3126 (10-day SMA) would open the door to 1.3119 (21-day SMA) and finally 1.2921 (low Oct.4).

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