GBPUSD hits new 2017 high on probe above 1.3300 barrier; UK jobs data in focus
Cable stays firm in early Wednesday’s trading and probes above round-figure 1.3300 barrier. The pair extends Tuesday’s strong rally of nearly 1%, sparked by better than expected UK inflation numbers to fresh 2017 highs.
Wednesday’s close above previous high at 1.3268 was bullish signal for extension towards Fibo projections at 1.3385 and 1.3457, en-route to key barrier at 1.3473 (weekly cloud top / 50% retracement 1.5016/1.1930 (Jun / Oct 2016 bear-leg).
UK jobs data are in focus today. Average earnings are expected to rise in July, according to the forecast at 2.3% vs 2.1% increase in June, which is seen as positive signal, however, jobless claims are expected to rise by 0.6K in July after falling by 4.2K in June.
Unemployment rate is expected to stay unchanged at 4.4%v in July.
Better than expected jobs data from UK would further boost pound while weaker figures would slow recent bulls for correction which is also signaled by overbought conditions on daily chart.
However, overall bullish structure favors further upside, with corrective dips seen as fresh buying opportunities.
Former top at 1.3268 marks immediate support ahead of higher base at 1.3158 (Tue/Mon lows) which is expected to contain stronger dips.
Res: 1.3314; 1.3385; 1.3400; 1.3457
Sup: 1.3268; 1.3224; 1.3200; 1.3158