The Pound retraces back up as U.S dollar bulls cool down. Investors have now shifted their attention towards two key economic data set to be released today from the U.K, both the Unemployment Rate and the Average Earnings Index. Consensus points towards no change in both figures relative to the previous release with Unemployment Rate expected to print at 4.2% and Average Earnings Index expected to print at 2.5%. Keep in mind that general sentiment remains bearish given the continued risk of a “no-deal” Brexit, hence disappointing economic releases will only make matters worse for the Pound.
Most recently, the Pound has bounced off the 1.27251 support level and broke above the 13-period moving average indicating short term bullish momentum. Given the general negative sentiment surrounding the Pound, the pair will either continue its rise towards the next resistance level at 1.28386 and then drop back towards 1.27251 or fall back down below the 13-period moving average and drop towards 1.27251.
Support: 1.27891 1.27251
Resistance: 1.28386 1.29223