GBP/USD challenges 1.2200 on UK data

Pablo Piovano FXStreet

The upside momentum around the British Pound seems to have run out of steam following the UK’s jobs report, with GBP/USD easing ground towards the 1.2200 handle.

GBP/USD offered on data

The pair met some selling pressure despite UK’s unemployment rate ticked lower to 4.7% in January, while the Claimant Count Change dropped by 11.3K, more than initially forecasted.

On the not-so-bright side, Average Earnings including Bonus expanded less than expected 2.2% on a yearly basis.

In the meantime, GBP should stay under pressure as the negotiations of the UK-EU divorce are set to kick in at some point in the next weeks. UK’s PM Theresa May is expected to trigger Article 50 anytime soon after the Parliament passed the Brexit bill on Tuesday.

In the US data space, and before the FOMC interest rate decision, inflation figures tracked by the CPI area due along with February’s Retail Sales, the NY Empire State index, the NAHB index and the EIA’s weekly report on crude supplies.

GBP/USD levels to consider

As of writing the pair is up 0.38% at 1.2197 and a breakout of 1.2256 (high Mar.15) would aim for 1.2327 (20-day sma) and finally 1.2374 (55-day sma). On the other hand, the next support lines up at 1.2106 (low Mar.14) followed by 1.2036 (low Jan.11) and then 1.1979 (2017 low Jan.16).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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