GBP/USD gyrates around 1.28 on UK jobs
- Cable advances beyond 1.2820 to fresh daily highs.
- UK’s jobless rate dropped to 4.0% for the month of June.
- UK’s Claimant Count Change disappointed estimates at 6.2K in July.
The Sterling keeps the bid tone intact on Tuesday, although GBP/USD has retreated from daily highs in the 1.2820 area.
GBP/USD up despite data
Cable managed to leave behind Friday’s 2018 lows in the proximity of 1.2720, retaking 1.2800 the figure although the upside stalled in the 1.2820 region for the time being.
GBP stays firm despite UK’s Claimant Count Change came in at 6.2K in July, missing initial estimates. In addition, Average Hourly Earnings +Bonus expanded 2.4% in June vs. 2.5% forecasted.
On the brighter side, the unemployment rate dropped to 4.0% in June vs. 4.2% expected.
Despite the ongoing corrective upside, GBP remains under pressure on increasing buying interest around the greenback and unabated uncertainty surrounding the Brexit negotiations.
GBP/USD levels to consider
As of writing, the pair is gaining 0.16% at 1.2791 and a break above 1.2827 (high Aug.14) would open the door to 1.2906 (10-day SMA) and then 1.3014 (21-day SMA). On the flip side, the immediate support aligns at 1.2723 (2018 low Aug.10) seconded by 1.2637 (low Jun.12 2017) and finally 1.2591 (monthly low Jun.21 2017).