For the 24 hours to 23:00 GMT, the GBP rose 0.06% against the USD and closed at 1.2760, after UK’s ILO unemployment rate remained steady at a 42-year low level of 4.6% in the three months ended April, meeting market expectations. However, the nation’s average earnings including bonus advanced less-than-expected by 2.1% on an annual basis in the February-April 2017 period, rising at its slowest pace since February 2016, intensifying concerns about the outlook for consumers as inflation accelerates to a four-year high level. Markets anticipated average earnings to gain 2.4%, following a revised rise of 2.3% in the January-March 2017 period.
In the Asian session, at GMT0300, the pair is trading at 1.2747, with the GBP trading 0.1% lower against the USD from yesterday’s close.
The pair is expected to find support at 1.2708, and a fall through could take it to the next support level of 1.2669. The pair is expected to find its first resistance at 1.2802, and a rise through could take it to the next resistance level of 1.2857.
Looking ahead, the Bank of England’s (BoE) interest rate decision, due in a few hours, would possibly remain a low-key affair as the central bank is unlikely to be hawkish amid heightened political and economic uncertainty.
The currency pair is trading below its 20 Hr moving average and showing convergence with its 50 Hr moving average.