GBP/USD holds gains around 1.2570 inspired by upbeat UK Employment, US CPI remains key

GBP/USD has locked gains originated after the release of the solid UK labor market data.
Investors have started getting precautionary ahead of the United States CPI data.
More interest rate hikes by the BoE are highly expected as the battle against persistent inflation is far from over.

Sagar Dua FXStreet

The GBP/USD pair is holding gains generated after the release of the upbeat United Kingdom Employment data. The Cable is expected to continue its upside journey toward the round-level resistance of 1.2600 as the USD Index (DXY) is struggling to show a solid recovery from 103.30.

S&P500 futures have surrendered the majority of gains added till early London. It seems that investors have started getting precautionary ahead of the United States Consumer Price Index (CPI) data.

The street is convinced that US headline inflation would soften dramatically due to consistently falling energy prices, however, sheer stubbornness in anticipated in core inflation figures as the demand for durables has remained strong and the service sector is still resilient.

The impact of soft inflation numbers would propel the need for a skip in the policy-tightening spell by the Federal Reserve (Fed).

Meanwhile, solid United Kingdom Employment data are demonstrating resilience in the economy. The Claimant Count Change (May) saw a massive decline of 13.6K while the street was anticipating a decline of 9.6K. In the past month, Claimant Count Change soared by 23.4K. Three-month Unemployment Rate (April) slipped to 3.8% vs. the estimates of 4.0% and the former figure of 3.9%

Apart from that, the economic indicator which was crucial for investors was the Average Earnings excluding bonuses data. The economic data soared to 6.5% against the consensus and the former release of 6.1%. UK households equipped with higher earnings for disposal are going to accelerate the overall demand, which eventually will heat up inflationary pressures further.

More interest rate hikes by the Bank of England (BoE) are highly expected as the battle against persistent inflation is far from over.

GBP/USD

Overview
Today last price	1.2572
Today Daily Change	0.0067
Today Daily Change %	0.54
Today daily open	1.2505

Trends
Daily SMA20	1.2442
Daily SMA50	1.2471
Daily SMA100	1.231
Daily SMA200	1.2021

Levels
Previous Daily High	1.2599
Previous Daily Low	1.2487
Previous Weekly High	1.259
Previous Weekly Low	1.2369
Previous Monthly High	1.268
Previous Monthly Low	1.2308
Daily Fibonacci 38.2%	1.253
Daily Fibonacci 61.8%	1.2557
Daily Pivot Point S1	1.2462
Daily Pivot Point S2	1.2418
Daily Pivot Point S3	1.2349
Daily Pivot Point R1	1.2574
Daily Pivot Point R2	1.2643
Daily Pivot Point R3	1.2686

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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