• GBP/USD eased on Thursday as pound pares gains against dollar after US jobless claims data.
• U.S. initial jobless claims dipped slightly last week, pointing to still-low layoffs, but weak hiring is fueling household concerns about the labor market..
• Initial U.S. jobless claims fell by 1,000 to a seasonally adjusted 209,000 in the week ended January 24, while the previous week’s figure was revised up by 10,000 to 210,000, the Labor Department said on Thursday.
• Federal Reserve Chair Jerome Powell said on Wednesday that labor market indicators suggest conditions may be stabilizing after a period of gradual softening, as the central bank kept its benchmark rate unchanged at 3.50%–3.75%.
• Technical signals are strongly bullish as RSI is at 68, daily momentum studies 5, 9 and 10 DMAs are trending up.
• Immediate resistance is located at 1.3846(23.6%fib), any close above will push the pair towards 1.3901(23.6%fib)
• Strong support is seen at 1.3690(38.2% fib) and break below could take the pair towards 1.3565(50% fib).
Recommendation: Good to buy around 1.3750 with stop loss of 1.3660 and target price of 1.3830
