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5-week old resistance line ahead of UK employment data

  • The absence of the Brexit headline limits the movement of the pound below the trendline that goes down over a month.
  • Possible positive employment series can push the estimate above 1.3115 rise barrier towards 1.3200.

The GBP / USD pair is in the round near 1.3090 while heading to London on Tuesday. The overall downtrend in the US dollar (USD) was down as it failed to surpass the five week old trend line resistance. The UK's monthly employment data and US industrial production will be focused.

As the Brexit headline took the back seat of the British Parliament's Easter recess, investors took the risk appetite and data points a priority recently.

Monday's overall risk was to lower the US dollar against most of the other nations and the British pound was no exception.

Early on Tuesday merchants began processing US dollars in advance of the UK employment data. Adding to the political scene may be the latest news from the UK that is trying to avoid Britain 's Brexit and possibly narrow the range of participation in EU elections in return for stopping talks on its initial proposal at departure.

Continuously, merchants can focus on the average monthly income and unemployment rate in February in the UK, and with the change in the number of UK claimants in March before focusing on US industrial production figures.

According to forecasts, average earnings excluding UK unemployment and bonuses may not change to 3.9% and 3.4%, respectively. However, average earnings including bonus components can increase from 3.4% to 3.5%, but the change in the number of claimants can be mitigated from 27K to 20K. In addition, industrial production in the US may rise from + 0.0% to 0.2%.

GBP / USD Technical Analysis

1.3060 and 1.3010 serve as immediate support, but the market concentration can go back to the 200-day moving average (SMA) of 1.2975.

Meanwhile, the trend line, which has dropped to 1.3115 since mid-March, could limit the near-progress of the estimate before fueling the 1.3200 and 1.3265 / 70 numbers to the north.

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