GBP/USD: Firmer tone ahead of UK employment data

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 11, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Bali) - GBP/USD is trading with a bid tone since the US close, last quoted at 1.5144 vs 1.5118 NY close, having recovered from a low of 1.5102 in the last European session, with traders now eyeing the UK employment report, due at 9.30 GMT.

    UK employment data to come firmer?

    While the overall sentiment towards the Pound remains negative, following a major disappointment in the last BOE monetary policy meeting, which was perceived as more dovish with regards to the timing of the first UK rate hike, the employment data is expected to show improved average earnings and claimant count change, which might be supporting the GBP, as traders position ahead of the event.

    However, as Valeria Bednarik, Chief Analyst at FXStreet, notes: "Previous month figures were a huge disappointment, although wages remained strong. If the numbers are again below expectations, the GBP/USD pair can fall down to the 1.5000 figure, and even break below it."

    GBP/USD key levels

    Looking at the key levels for today, should the Pound find acceptance above the 1.5150 area (Tuesday's high), the next key resistance is 1.5175/80 - Daily R2 - ahead of 1.52 - coincides with Daily R3 -. On the downside, 1.5130 should act as the first support area, followed by 1.51.
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