GBP/USD, H4 11 March 2024
Pound Sterling experiences a surge against the US Dollar, propelled by discouraging US Unemployment data. The US Bureau of Labor Statistics (BLS) reports soft wage growth and a notable spike in the Unemployment rate for February. Despite better-than-expected Nonfarm Payroll data, the pessimistic economic outlook fuels expectations of a Federal Reserve interest rate cut before the Bank of England, introducing a potential policy divergence. Market participants anticipate a Fed rate cut in June, while expectations for a BoE rate cut loom from August.
GBP/USD is trading higher following the prior breakout above the previous resistance level. Suggesting the pair might experience technical correction.
Resistance level:1.2905, 1.2995📉
Support level: 1.2785, 1.2710📈
Pound Sterling experiences a surge against the US Dollar, propelled by discouraging US Unemployment data. The US Bureau of Labor Statistics (BLS) reports soft wage growth and a notable spike in the Unemployment rate for February. Despite better-than-expected Nonfarm Payroll data, the pessimistic economic outlook fuels expectations of a Federal Reserve interest rate cut before the Bank of England, introducing a potential policy divergence. Market participants anticipate a Fed rate cut in June, while expectations for a BoE rate cut loom from August.
GBP/USD is trading higher following the prior breakout above the previous resistance level. Suggesting the pair might experience technical correction.
Resistance level:1.2905, 1.2995📉
Support level: 1.2785, 1.2710📈