GBPUSD – Sterling Awaits UK’s Employment Report for Next Move17 May, 2017 by Aayush Jindal in Market Analysis
- The British Pound struggled a lot to break the 1.2980-1.3000 resistance area against the US Dollar.
- The GBPUSD pair moved down, and broke a major bullish trend line at 1.2932 on the 4-hours chart.
- Today in the UK, the Claimant Count Change for April 2017 will be released by the National Statistics, which is forecasted to post 7.5K.
- In the US, the Industrial Production for April 2017 (MoM) released by the Board of Governors of the Federal Reserve posted an increase of 1%.
GBPUSD Technical Analysis
The British Pound traded with a positive bias this past week versus the US Dollar with a close above 1.2750. However, the GBPUSD pair is now struggling to break the 1.2980-1.3000 resistance.
The pair attempted a break above 1.2985 on more than two occasions, but failed. It moved down and broke the 38.2% Fib retracement level of the last wave from the 1.2756 low to 1.2987 high.
Furthermore, there was a break below a major bullish trend line at 1.2932 on the 4-hours chart. At the moment, the pair is finding support near 1.2880-1.2900, but remains at a risk of more declines in the near term.
On the upside, an initial resistance is at 1.2940, followed by the all-important 1.2985.
US Industrial Production
Recently in the US, the Industrial Production for April 2017 was released by the Board of Governors of the Federal Reserve. The forecast was lined up for an increase of around 0.3% in the Industrial Production in April 2017, compared with the previous month.
The result was better, as there was a rise of 1%. The Capacity Utilization posted 76.7%, which was also better than the forecast of 76.3%. The report highlighted that the “indexes for mining and utilities posted gains of 1.2 percent and 0.7 percent, respectively. At 105.1 percent of its 2012 average, total industrial production in April was 2.2 percent above its year-earlier level”.
The US Dollar remained supported against the British Pound, but a lot depends on today’s UK Claimant Count Change April 2017 reading for the next move in GBPUSD.
Economic Releases to Watch Today
- UK’s Claimant Count Change April 2017 – Forecast 7.5K, versus 25.5K previous.
- UK’s ILO Unemployment Rate March 2017 (3M) – Forecast 4.7%, versus 4.7% previous.
- UK Average Earnings Including Bonus March 2017 (3Mo/Year) – Forecast +2.4%, versus +2.3% previous.
- UK Average Earnings Excluding Bonus March 2017 (3Mo/Year) – Forecast +2.2%, versus +2.2% previous.
- Euro Zone CPI for April 2017 – Forecast +1.9% (YoY) versus +1.9% previous.
- Euro Zone CPI for April 2017 – Forecast +0.4% (MoM) versus +0.8% previous.