FXStreet (Mumbai) – The GBP bulls found the much-need impetus from the somewhat upbeat UK employment report and pushed the cable higher from multi-year troughs.
GBP/USD bounces-off 6-year lows
The GBP/USD pair trades 0.10% higher at 1.4175, reversing a spike to 1.4190 levels. The major found fresh support from the UK employment data, as the bulls breathed a sigh of relief, after having fallen to the lowest levels since March 2003 at 1.4126 pre-data release.
However, the recovery appears to falter just shy of 1.42 handle and the prices now consolidate around 1.4175 levels, as the persisting risk-off moods continue to weigh on the risk currency GBP.
The UK unemployment rate improved from 5.2% to 5.1% in November, its lowest level in a decade, whilst the jobless claims change for December ticked lower from -2,200 to -4,300. However, the wage growth excluding bonuses declined further from 2.0% to 1.9%, while the gauge including bonuses decelerated from 2.4% to 2.0%,
In the day ahead, market will continue to digest the UK employment data as focus now shifts towards the crucial US CPI figures.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.4190/1.4200 (daily high/ round number), above which 1.4220/30 (5-DMA/ psychological levels) would be tested. On the flip side, support is seen at 1.4126 (daily low) below which it could extend losses to towards 1.4100/ 1.4080 (March 2009 Levels).
(Market News Provided by FXstreet)