GBP/USD testing back towards 1.60 handle

FXstreet.com (London) - GBP/USD spiked to 1.6062 the high but the move was only short lived and the trade trades back to 1.6020 supporting level.


Research teams at TD Securities explained that the UK labour market data on net was better than expected, though the all-important ILO unemployment rate for August came in unchanged and on consensus at 7.7%. “Jobless claims for September fell 42k, better than the 25k expected and the largest one month fall since June 1997, while the August figure also saw a better revision from –33k to –42k. The UK claimant count data has now printed better than expected in 13 of the last 15 months and underpins the broadening recovery, though the stronger employment and softer earnings data does question how much of the rebound in productivity growth in Q2 will carry into Q3”. Up later we have the Fed speakers as well as the Beige Book.

GBP/USD Levels

The 20 DMA is 1.6064, the 50 DMA is 1.5799 and the 200 DMA is 1.5476. RSI (14) reads 58.29. Supports are ascending from 1.5886, 1.5914, 1.5990 and 1.6020 where the pair currently sits as a spot reference. Resistances are 1.6055, 1.6070 and 1.6124.

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