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16 Apr 2014
GBP/USD capped by 1.6820
FXStreet (Edinburgh) - The sterling is now returning below the 1.6800 handle, after the GBP/USD failed to follow through the 1.6820/25 band post-UK data.
GBP/USD boosted by data
Upbeat data from the UK’s labour market boosted the pound above the critical 1.6800 barrier on Wednesday, after the jobless rate came in lower at 6.9% in the three months ended in February and the claimant count decreased by 30.4K. “The people in work, the wages story and the underemployment figures are all very encouraging and suggest that the “slack” in the labour market is shrinking. As such, while we are still sticking with our view that the first BoE rate hike will come in February next year, the relative strength in the economy means we feel the risks are skewed towards an earlier move rather than a later one”, signalled James Knightley, Analyst at ING Bank NV.
GBP/USD levels to watch
As of writing the pair is advancing 0.40% at 1.6796 facing the initial up barrier at 1.6821 (high Apr.10) followed by 1.6823 (2014 high Feb.17) and then 1.6845 (high Nov.18 2009). On the downside, a breach of 1.6721 (low Apr.16) would target the psychological level at 1.6700 en route to 1.6657 (low Apr.15).
GBP/USD boosted by data
Upbeat data from the UK’s labour market boosted the pound above the critical 1.6800 barrier on Wednesday, after the jobless rate came in lower at 6.9% in the three months ended in February and the claimant count decreased by 30.4K. “The people in work, the wages story and the underemployment figures are all very encouraging and suggest that the “slack” in the labour market is shrinking. As such, while we are still sticking with our view that the first BoE rate hike will come in February next year, the relative strength in the economy means we feel the risks are skewed towards an earlier move rather than a later one”, signalled James Knightley, Analyst at ING Bank NV.
GBP/USD levels to watch
As of writing the pair is advancing 0.40% at 1.6796 facing the initial up barrier at 1.6821 (high Apr.10) followed by 1.6823 (2014 high Feb.17) and then 1.6845 (high Nov.18 2009). On the downside, a breach of 1.6721 (low Apr.16) would target the psychological level at 1.6700 en route to 1.6657 (low Apr.15).