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.

comments powered by Disqus
Related Forex Analysis
  1. EUR/USD sitting just above 1.2950 support
    Forex News

    EUR/USD sitting just above 1.2950 support

  2. Yen Gains, Aussie Dollar Falls on Soft Chinese Economic Data
    Forex News

    Yen Gains, Aussie Dollar Falls on Soft Chinese Economic Data

  3. USD/JPY drifting lower, but still well above 107.00
    Forex News

    USD/JPY drifting lower, but still well above 107.00

  4. Crude Oil Prices Aiming to Extend Lower, SPX 500 May Be Topping
    Forex News

    Crude Oil Prices Aiming to Extend Lower, SPX 500 May Be Topping

  5. USD/JPY Technical Analysis: Prices Set New Six-Year High
    Forex News

    USD/JPY Technical Analysis: Prices Set New Six-Year High

Trading Center