GBPUSD: Trapped in a 60 Pips Range

Pound is trading 0.15 percent higher today at 1.2707 after the latest UK employment report showed that headline wages ticked up to 3.1% for the three months to April, while the ex-bonus measure – at 3.4% 3m/y, was also stronger than analyst’s estimates.  The UK economy contracted 0.4% in April, while manufacturing and industrial production also recorded steep declines on monthly and yearly basis. The pair failed to hold the daily high at 1.2727 after the better than expected data and retreated back to the middle of the recent range.

On the technical side the pair continues to consolidate around the 1.27 zone for second week in a row and trading in just 60 pips trading range from 1.2669 to 1.2727. The pair will find support at the low from June 6th at 1.2665 which if breached can accelerate the downward move down to 1.26 round figure. The final support stands at 1.2551 the low from end of May. On the upside first resistance stands at daily high up to 1.2727 while more offers will emerge at 1.2750 the previous week high. A strong close above that area can lead prices to May 21st high at 1.2815.  The Intraday bias is neutral for the pair while the longer term outlook is negative amid persistent Brexit uncertainties.