GBP/USD riding recent bullish releases

By FXstreet.com | June 12, 2014 AAA

FXStreet (Guatemala) - GBP/USD is trading at 1.6810, up 0.13% on the day, having posted a daily high at 1.6861 and low at 1.6786.

Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ explained that "The pound has strengthened further following the release yesterday of another robust employment report from the UK. The report revealed that the UK economy added 345k jobs over the last three months equating a 1.1% increase in employment." He noted that "It was the strongest three month period of employment growth on record dating back to the early 1970’s. As a result the unemployment rate declined more sharply than expected by 0.2 point to 6.6% reinforcing our view that the BoE will begin raising rates from early next year encouraging a further strengthening of the pound." Now, the Mansion House speeches by BoE Governor Carney and Chancellor Osborne are key for markets. The Market Strategy Team at UOB Group summed it up and said “There is no change to the current neutral mid-term outlook and further range trading between 1.6720 and 1.6860 is expected for the coming week."

GBP/USD Levels

Spot is presently trading at 1.6813, and next resistance can be seen at 1.6813 (Yesterday's High), 1.6816 (Hourly 20 EMA), 1.6820 (Weekly High), 1.6821 (Daily Classic R1) and 1.6853 (Daily Classic R2). Support below can be found at 1.6793 (Hourly 100 SMA), 1.6791 (Daily 20 SMA), 1.6788 (Daily Open), 1.6786 (Daily Low) and 1.6783 (Weekly Classic PP).

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