The U.K Employment Report comes strong today. Average Earnings Index +Bonus (Nov) released at 3.2% as the previous month. passing a forecast of 3.1% in the last month. Claimant Count Change (Dec) fell by 14.9K, from 28.8K. Missing a forecast of 22.5K.
This development supports the GBPUSD, the pair jumped beyond 1.3004 levels. Now the focus will be on 1.3045 levels. A halt is likely, it should turn lower from here. But a sustained breakout – daily closing- above 1.3045 will extend the corrective recovery to the main resistance at 1.3117 levels.
On the downside, support comes around 1.3004 levels. Above that level will keep pushing on the 1.3045 levels. Below 1.3004 will restore the downside momentum and pave the way to 1.2925 levels.
In conclusion: The GBPUSD sees recovery threats above 1.3004 levels with caution…
Support:1.3004, 1.2925, 1.2830, 1.2725
Resistance: 1.3045, 1.3117, 1.3230, 1.3283