GBP/USD Outlook: Sterling Advances Through Key Barrier, Boosted by Strong Jobs Data

Technical analysis of Forex market

Cable enters American session on Tuesday firmly in green and above pivotal barrier at 1.2942 (Fibo 38.2% of 1.3217/1.2772 / daily Kijun-sen). The pair ticked lower after release of UK jobs data, as markets were initially disappointed after earnings came at 3.4% in three months to December, missing 3.5% forecast, however, data were solid, as pay growth remained at its fastest pace in a decade. Adding to positive tone was strong increase in job creation, which rose 167K in three month to December, beating 152K forecast and 141K in the previous period. Unemployment in UK remains at the lowest in over 40 years at 4%, completing the picture of strong UK labor sector ahead of Brexit. Fresh extension of recovery leg from 1.2772 low (14 Feb) looks for bullish signal on daily close above 1.2942 pivot, to confirm reversal and open way for test next strong resistance zone between 1.2990 and 1.3007 (converged 20/200SMA’s / 50% retracement of 1.3217/1.2772). Sideways-moving 10SMA (1.2897) holds the action of Mon/today and is expected to keep the downside protected.

Res: 1.2990; 1.3007; 1.3047; 1.3102
Sup: 1.2942; 1.2897; 1.2879; 1.2819

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