GBPUSD failed earlier today to capitalize on better wages report and that gave the sellers the opportunity to send the pair to an area that we haven’t seen since April 2017. The UK May average weekly earnings came in at +3.4% vs +3.1% 3m/y expected. UK Average Earnings Excluding Bonus came in at 3.6% (3Mo/Yr) better than expectations of 3.5%) in May. United Kingdom Claimant Count Change came in at 38K beating forecasts of 22.8K in June. The United Kingdom Claimant Count Rate rose from previous 3.1% to 3.2% in June. The UK ILO Unemployment Rate (3M) came in at 3.8% as expected.
The pair currently trades 0.71 percent lower at 1.2424 having hit the low at 1.2407. On technical side the bearish momentum persists as the pair still trading below all the major hourly and daily moving averages. Support for the pair stands 1.24 and then at 1.2371 the low from 10 April 2017. On the upside immediate resistance stands at 1.25round figure and then at 1.2520 the daily high and if the pair manages to close above it might continue with an attempt to 1.2531 the 50 hour moving average. Traders will hold their short positions as long as the pair holds below the 1.25 mark. Bottom fishing will emerge at 1.2370.Don’t miss a beat! Follow us on Twitter.