FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet explained that the British Pound reached a fresh year high against its American rival, soaring up to 1.5846, buoyant since early Europe, following the release of the UK monthly employment figures.
Key Quotes:
“The unemployment rate remained steady at 5.5% in the last 3 months, but the surprise came from wages that picked up to 2.7% against 2.1% expected. Alongside with employment figures, the BOE released the Minutes of its latest Minutes, showing no change, as all of the nine voting members agreed to leave the ongoing economic policy on hold.”
“The pair added over 200 pips in the day, which has left the 1 hour technical indicators in extreme overbought territory. Nevertheless, the strong upward tone will likely persists.”
“In the 4 hours chart, the technical indicators are beginning to look exhausted in extreme overbought levels, although the 20 SMA maintains a strong bullish slope well below the current level. Should the pair hold above the 1.5770 a midterm strong support level, the upside remains favored, with the market now looking for a test of the 1.6000 level.”
(Market News Provided by FXstreet)