- Risk-off sentiment, firmer US dollar sends Cable lower.
- May’s Plan B could keep the corrective slide cushioned.
- Markets await UK jobs and wages data for the next move.
The GBP/USD pair broke its overnight consolidative mode to the downside heading into the London markets, now looking to test the 100-DMA at 1.2854, with the immediate focus now on the UK labor market report due at 0930 GMT.
The spot continues to face stiff resistances ahead of the 1.29 handle, as the buyers remain wary over the Brexit scenario, as the March 29th deadline approaches. Moreover, the GBP markets digest the latest report that the UK Labor Party proposes option of second Brexit referendum while a broadly firmer US dollar amid risk-off action in the Asian equities, driven by global growth risks, also collaborated to the latest leg down in the Cable.
However, the UK PM May’s Plan B announced yesterday could help keep the sentiment somewhat underpinned around the pound. PM May noted that she does not rule out a no deal Brexit while adding that the Article 50 will not be extended without a deal. Further, a stronger UK wages data could bring back BOE rate hike talks back on the table, which would send the major back above the 1.29 handle.
“The UK regular pay (excluding bonuses) is expected to rise 3.3% over the year in three months to November, confirming the strongest pay rise in a decade from the previous month. The UK total pay (including bonuses) is expected to accelerate to 3.3% y/y in three months ending in November after rising 3.3% in the previous months,” Mario Blascak, PhD, Editor-in-Chief at FXStreet noted.
GBP/USD Technical Levels
GBP/USD
Overview:
Today Last Price: 1.2879
Today Daily change: -0.0015 pips
Today Daily change %: -0.12%
Today Daily Open: 1.2894
Trends:
Daily SMA20: 1.2771
Daily SMA50: 1.2751
Daily SMA100: 1.2891
Daily SMA200: 1.3086
Levels:
Previous Daily High: 1.2912
Previous Daily Low: 1.283
Previous Weekly High: 1.3002
Previous Weekly Low: 1.2668
Previous Monthly High: 1.284
Previous Monthly Low: 1.2477
Daily Fibonacci 38.2%: 1.288
Daily Fibonacci 61.8%: 1.2861
Daily Pivot Point S1: 1.2845
Daily Pivot Point S2: 1.2797
Daily Pivot Point S3: 1.2764
Daily Pivot Point R1: 1.2927
Daily Pivot Point R2: 1.296
Daily Pivot Point R3: 1.3008
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