GBP/USD slid to 1.7120 at European open

By FXstreet.com | July 17, 2014 AAA

FXStreet (Moscow) - GBP/USD opened at 1.7135, and fell asleep somewhere around, sliding to 1.7118 at the European open.

The disappointed market

The pair may take a rest after a very volatile week, and quite impressive moves. Unfortunately, the recent labor data failed to excite the market despite the better than expected unemployment figures. The reason why the investors ignored the positive news lies in overoptimistic expectations for wage inflation. And when average earnings came out below the forecasts, it convinced the market, there was no reason for the BOE to hurry with the first rate hike. However, we need to admit positive developments in the labor market that will finally bring better wage growth, thus the medium/long-term trend for the pound may still point to the upside.

What are today’s key GBP/USD levels?

Today's central pivot point can be found at 1.7134, with support below at 1.7116, 1.7094, and 1.7076 with resistance above at 1.7156, 1.7174, and 1.7196. Hourly Moving Averages are bullish, with the 200SMA at 1.7128, and the daily 20EMA bullish at 1.7080. Hourly RSI is bullish at 54.

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