FxWirePro: GBP/USD declines sharply from Brexit high on weak UK jobs data, sell on rallies
Cable has declined sharply more than 100 pips after UK CPI data. The pair hits low of 1.41732 at the time of writing. The weak wage growth data came yesterday has dragged cable down almost 95 pips after hitting fresh 201…
Cable has declined sharply more than 100 pips after UK CPI data. The pair hits low of 1.41732 at the time of writing. The weak wage growth data came yesterday has dragged cable down almost 95 pips after hitting fresh 2018 high at 1.43766. The weak economic data has reducing chance of rate hike by BOE. It is currently trading around 1.42088.
UK CPI came at 2.5% Y-O-Y lowest level since Mar 2017 compared to forecast of 2.7% and on monthly basis price rose 0.1% slightly below estimate of 0.3%. The decline in inflation takes pressure off the BOE to raise rates in the month of May.
The near term resistance is around 1.4210 (55- 4H EMA) and any break above will take the pair till 1.4250 (38.2% fibo)/1.4300/1.4370.
On the lower side, near term support is around 1.4170 (50% fibo) and any violation below will drag the pair till 1.4135 (20- day MA)/1.4070.
It is good to sell on rallies around 1.4220-25 with SL around 1.4265 for the TP of 1.4130/1.4075.
