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GBP/USD flirts with 1.5 after mixed UK data

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 16, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - The GBP/USD pair fell to a low of 1.4983 on a weak UK wage growth data, but managed to move back to 1.5 handle on the back of a drop in the unemployment rate.

    Awaits FOMC decision

    Sterling was offered after the average earnings including bonus and excluding bonus for October missed the estimate to print at 2.4% and 2.0% respectively. The claimant count number also missed estimates, however, the jobless rate dipped to 5.2% and that helped the cable retake 1.5 handle.

    The focus now is on the FOMC rate decision due later today. A weak UK wage growth data means Sterling is heading into the FOMC event on a weaker note and thus appears more vulnerable to a hawkish rate hike.

    GBP/USD Technical Levels

    At 1.5005, the pair faces immediate resistance at 1.5029 (previous day’s low), above which the spot could revisit 1.5087 (61.8% of Apr-Jun rally). A break higher would open doors for 1.5113 (23.6% of 1.5819-1.4895). On the other hand, a break below 1.50 would open doors for a drop to 1.4957 (Dec 8 low), under which the pair could target 1.4895 (latest cyclical low).
    For more information, read our latest forex news.
     

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