#Forex #Markets #GBPUSD
Today, data on the labor market in the UK were published, which demonstrates the strength of the labor market despite the tightening of conditions by the regulator.
Wages continue to grow at a rate above the pre-pandemic level (5.9% versus 3.4% in December 2019), unemployment is near historical lows (3.7%), and the change in the number of applications for unemployment benefits has again gone into negative territory. All this is a signal for continued inflation growth.
The market reacted to these data by strengthening the GBP, as further tightening of the PREP by the Bank of England is expected.
The ratio of buyers and sellers indicates a preponderance of the latter (38.9% of buyers versus 61.1% of sellers), which is also a signal for the continuation of the upward movement.
Technically, the price has strayed from the support level of 1.1910 – 1.2000 and the 200-day moving average. Also now we are seeing a puncture of the 50-day moving average.
In the current picture, the option of growth to the upper limit of the descending (blue) channel, near the 1.2330 – 1.2350 marks, looks very likely.
We can achieve these goals very quickly if the CPI in the USA does not disappoint the market today. If the US CPI also demonstrates overclocking, then the market can be deployed, so first of all it is necessary to take into account incoming data from the USA.
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