GBP/USD Ignores UK Data, Drops to 1.4420

GBP/USD Ignores UK Data, Drops to 1.4420

18 May 2016, 10:59
Roberto Jacobs
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GBP/USD Ignores UK Data, Drops to 1.4420

A brief knee-jerk following UK releases saw GBP/USD reaching 1.4450/55, although the up move proved to be short-lived.

GBP/USD offered despite upbeat results

After dipping to the area of 1.4420, spot has managed to regain 1.4450/55 after labour market figures in the UK economy have come in better than initially forecasted, as Claimant Count Change has decreased by 2.4K in April vs. a forecasted gain of 4.3K and Average Earnings inc. Bonus has gained 2.0% in March.

Further data saw the unemployment rate staying put at 5.1% on the three months ended in March, in line with prior surveys.

Next on tap for the pair will be the release of the FOMC minutes, with consensus slightly tilted towards a dovish tone from the Committee.

GBP/USD levels to consider

As of writing the pair is retreating 0.32% at 1.4417 facing the next support at 1.4342 (20-day sma) ahead of 1.4088 (low Apr.14) and finally 1.4004 (low Apr.6). On the flip side, a break above 1.4531 (high May 12) would aim for 1.4670 (high Feb.4) and then 1.4770 (high May 3).


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