16 Dec 2015
GBP/USD flirts with 1.5 after mixed UK data
FXStreet (Mumbai) - The GBP/USD pair fell to a low of 1.4983 on a weak UK wage growth data, but managed to move back to 1.5 handle on the back of a drop in the unemployment rate.
Awaits FOMC decision
Sterling was offered after the average earnings including bonus and excluding bonus for October missed the estimate to print at 2.4% and 2.0% respectively. The claimant count number also missed estimates, however, the jobless rate dipped to 5.2% and that helped the cable retake 1.5 handle.
The focus now is on the FOMC rate decision due later today. A weak UK wage growth data means Sterling is heading into the FOMC event on a weaker note and thus appears more vulnerable to a hawkish rate hike.
GBP/USD Technical Levels
At 1.5005, the pair faces immediate resistance at 1.5029 (previous day’s low), above which the spot could revisit 1.5087 (61.8% of Apr-Jun rally). A break higher would open doors for 1.5113 (23.6% of 1.5819-1.4895). On the other hand, a break below 1.50 would open doors for a drop to 1.4957 (Dec 8 low), under which the pair could target 1.4895 (latest cyclical low).
Awaits FOMC decision
Sterling was offered after the average earnings including bonus and excluding bonus for October missed the estimate to print at 2.4% and 2.0% respectively. The claimant count number also missed estimates, however, the jobless rate dipped to 5.2% and that helped the cable retake 1.5 handle.
The focus now is on the FOMC rate decision due later today. A weak UK wage growth data means Sterling is heading into the FOMC event on a weaker note and thus appears more vulnerable to a hawkish rate hike.
GBP/USD Technical Levels
At 1.5005, the pair faces immediate resistance at 1.5029 (previous day’s low), above which the spot could revisit 1.5087 (61.8% of Apr-Jun rally). A break higher would open doors for 1.5113 (23.6% of 1.5819-1.4895). On the other hand, a break below 1.50 would open doors for a drop to 1.4957 (Dec 8 low), under which the pair could target 1.4895 (latest cyclical low).