12 Aug 2015
GBP/USD rejected at 1.5600, tests 1.5550 on UK data
FXStreet (Mumbai) - The British pound failed to sustain at higher levels and slipped back in the red versus the US dollar in the European morning, with GBP/USD facing rejection at 1.56 handle. The cable edged lower as the pound was left unimpressed by the lacklustre UK employment report which revealed that jobless rate remained unchanged while wage growth disappointed in June.
GBP/USD capped at 1.5604
The GBP/USD pair trades modestly flat at 1.5560, easing-off fresh session highs reached at 1.5604 some time ago. The major erased early gains and fell back into the negative territory following the release of UK jobs data which showed that UK labour market continued to tighten in June, although wage growth came out weaker than expected.
Average UK weekly earnings exbonuses for June remained robust at 2.8% y/y, while including bonuses the figure disappointed and printed 2.4% and dipped from 3.2% previously. The unemployment rate for June stayed at 5.6%.
However, losses were cushioned on the back of a falling greenback across the board as risk-off sentiment faded. The US dollar index, a virtual gauge of greenback’s strength, now trades -0.64% lower at 96.62. Markets now await US data releases due later in the New York session for further momentum on the pair.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5604 (Today’s High) above which gains could be extended to 1.5638 (Aug 6 High) levels. On the flip side, support is seen at 1.5535 (Today’s Low) below which it could extend losses to 1.5466 (Aug 6 Low) levels.
GBP/USD capped at 1.5604
The GBP/USD pair trades modestly flat at 1.5560, easing-off fresh session highs reached at 1.5604 some time ago. The major erased early gains and fell back into the negative territory following the release of UK jobs data which showed that UK labour market continued to tighten in June, although wage growth came out weaker than expected.
Average UK weekly earnings exbonuses for June remained robust at 2.8% y/y, while including bonuses the figure disappointed and printed 2.4% and dipped from 3.2% previously. The unemployment rate for June stayed at 5.6%.
However, losses were cushioned on the back of a falling greenback across the board as risk-off sentiment faded. The US dollar index, a virtual gauge of greenback’s strength, now trades -0.64% lower at 96.62. Markets now await US data releases due later in the New York session for further momentum on the pair.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5604 (Today’s High) above which gains could be extended to 1.5638 (Aug 6 High) levels. On the flip side, support is seen at 1.5535 (Today’s Low) below which it could extend losses to 1.5466 (Aug 6 Low) levels.