by FXOpen on March 20th, 2019

GBP/USD outlook: the price continues to be range-bound

Yesterday, the British pound tried to strengthen against the US dollar, reaching weekly highs. This was due to the excellent statistics on the labor market. Official data showed that the number of employed increased by 222K people, which made it possible to reduce the unemployment rate to the lowest level since the beginning of 1975.

According to statistics, salaries increased by 3.4% per year, which exceeds the average forecast of 3.2%. Brexit’s uncertainty, however, has limited the growth potential of the British pound. The speaker of the British parliament, John Bercow, said that the government should submit another proposal to the parliament if it wants to hold another vote on its Brexit plans. According to precedents dating back to 1604, parliamentary rules state that the same proposals cannot be submitted for voting more than once during the same session of parliament. Markets await the release of UK statistics on inflation and prices.

GBP/USD Technical Analysis

The British Pound recovered recently above the 1.3270 resistance against the US Dollar. However, the GBP/USD pair faced a strong resistance near the 1.3300 level and it is currently consolidating in a range.

The pair corrected lower below the 1.3280 level and the 50 hourly simple moving average. It seems like the pair is about to break key triangle support at 1.3255 on the hourly chart.

An immediate support is near the 1.3247 level and the 50% Fib retracement level of the recent wave from the 1.3184 low to 1.3310 high. If sellers clear the 1.3245 support, there is a risk of an extended decline in the near term.

The next key support is at 1.3210, where buyers are likely to appear. On the upside, the main resistances are near the 1.3280 and 1.3300 levels.

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