FxWirePro: GBP/USD drops below 1.2170, scope for further downside
GBP/USD declined on Thursday as investors brushed off the finance minister's budget statement the previous day as largely a non-event that would do little to boost growth in Britain as it prepares to leave the European U…
GBP/USD declined on Thursday as investors brushed off the finance minister's budget statement the previous day as largely a non-event that would do little to boost growth in Britain as it prepares to leave the European Union.
A stronger U.S. dollar also added losses for the Sterling as the dollar firmed on upbeat economic data and increased expectation that Federal Reserve will raise interest rate next week.
The number of Americans filing for unemployment benefits last week rebounded from a near 44-year low, but the labor market continues to tighten amid a sharp drop in job cuts in February.
Initial claims for state unemployment benefits rose 20,000 to a seasonally adjusted 243,000 for the week ended March 4, the Labor Department said on Thursday. Claims for the prior week were unrevised at 223,000, the lowest level since March 1973.
Further upside for this pair is expected to be limited as strong resistance level at 1.2209 is set to limit upside and bring decline towards lower levels.
To the upside, immediate resistance can be seen at 1.2209, a break above this level would expose the cable to next resistance level at 1.2300 levels.
To the downside strong support can be seen at 1.2129, a break below at this level will open the door towards next level at 1.2051.
