GBP/USD couldn’t labor its way above 1.72 on Labor report

By FXstreet.com | July 16, 2014 AAA

FXStreet (Moscow) - GBP/USD was edging higher at 1.7144 just before the release of UK data, and moved to 1.7111 low right after.

Labor is out

The pair was in agitation the whole morning, as yesterday’s CPI data confirmed the growing price pressure within the economy. Since labor market is as important for the BOE as inflation, the released today report attracted attention of all market participants. The data came out mixed. The Claimant Count Change came out better than expected at -36K vs -27K, and Average Earnings Excluding Bonus was just 0.7% vs 0.8%. ILO Unemployment rate came out as expected at 6.5%. All in all, the market took the data as a sign the BOE may delay the first hike as the inflation pressure is not rising in the labor market, thus sending GBP/USD to 1.7111 with the next target at 1.7071 in case the trend continues.

What are today’s key GBP/USD levels?

Today's central pivot point can be found at 1.7131, with support below at 1.7071, 1.6998, and 1.6938 with resistance above at 1.7204, 1.7264, and 1.7337. Hourly Moving Averages are largely bullish, with the 200SMA at 1.7130, and the daily 20EMA flat at 1.7074. Hourly RSI is bullish at 51.

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