GBP/USD Forecast: Sterling bulls fully dependent on dollar weakness, critical US CPI eyed
Benefiting from the misery of others has its limits – GBP/USD has resumed its falls in response to unconvincing UK labor figures. The Claimant Count Change – aka jobless claims – dropped by only 58,600 in August, weaker than over 70,000 expected. That shows Britain's recovery is slowing down.
Figures for July were more upbeat, showing a drop in the Unemployment Rate from 4.7% to 4.6%, as expected. Excluding bonuses, wage growth remained elevated at 8.3% YoY, marginally above 8.2% projected. Nevertheless, the more recent figures carry more weight. Read more...
GBP/USD analysis: Tests 1.3880 level
On Tuesday, the GBP/USD currency exchange rate surged and touched the 1.3880 level. The zone above this level has kept the currency pair down throughout September.
If the pair manages to break the resistance of the 1.3880 zone, the rate could reach for the resistance of the 1.3900 mark and the weekly R1 simple pivot point at 1.3910. Above these levels, the weekly R2 provides resistance at 1.3981. Read more...
GBP/USD Price Analysis: Falters ahead of 1.3900 mark, US CPI awaited
The GBP/USD pair built on the previous day's goodish rebound from sub-1.3800 levels and gained some follow-through traction through the first half of the trading action on Tuesday.
The US dollar retreated further from two-week tops touched on Monday amid some repositioning trade ahead of the critical US consumer inflation figures. This, in turn, was seen as a key factor that provided a goodish intraday lift to the GBP/USD pair. Read more...
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