Wednesday, January 23, 2019

GBP/USD - 23 January 2019


Fundamental Highlights

The Pound pushes higher towards 1.2950 as both the UK wage growth and the UK unemployment rate printed better than expected. Wage growth in the UK for November printed at 3.4% relative to the expected 3.3%, while UK unemployment rate for November printed at 4.0% compared to the expected 4.1%. For today, investors will continue to digest the positive economic data coming out of the UK, while also monitoring any announcements related to Brexit.

Technical Analysis

The Pound breaks above the 13-period moving average (blue) and rises towards the 1.2961 resistance level. For now, momentum is bullish as prices are trading above all the three major moving averages. The next move higher will be confirmed if prices manage to break above the upper end of the current resistance level at 1.3005. The break above the 1.3005 resistance will pave the way for a rise towards the 1.3085 resistance level.

Support: 1.2849/ 1.2790
Resistance: 1.3005 / 1.3085

Chart (H4)