GBP/USD saw a surge in the early European session, reaching above 1.2800 for the first time in a week. Positive labor market data from the UK supported the Pound Sterling, driving demand higher. If the pair manages to break through the 1.2810-1.2820 resistance area, technical buyers could step in, propelling the pair even higher.
British Pound PRICE Today
The table below displays the percentage change of the British Pound (GBP) against major currencies today. Notably, the Pound was strongest against the Japanese Yen.
The UK’s Office for National Statistics reported a decline in the ILO Unemployment Rate to 4.2% in the three months to June, below market expectations of 4.5%. Additionally, annual wage inflation edged lower to 5.4%, beating analysts’ estimates of 4.6%. This data led to a strengthening of the Pound Sterling against its major counterparts.
Looking ahead, the US Bureau of Labor Statistics will release Producer Price Index (PPI) data for July later in the day. A stronger-than-expected increase in the PPI could support the USD. However, investors may hold off on major positions ahead of the upcoming Consumer Price Index data releases from both the UK and the US on Wednesday.
GBP/USD Technical Analysis
The Relative Strength Index (RSI) indicator on the 4-hour chart indicates a bullish bias in the near term, with key resistance levels at 1.2810-1.2820. If broken, the next resistance levels are at 1.2850 and 1.2900. On the downside, support levels are at 1.2750, 1.2700, and 1.2660.
Pound Sterling FAQs
Here are some key facts about the Pound Sterling:
- The Pound Sterling (GBP) is the oldest currency in the world, with key trading pairs like GBP/USD and GBP/JPY.
- The value of the Pound Sterling is influenced by monetary policy decisions by the Bank of England.
- Economic data releases, such as GDP and employment figures, can impact the value of the Pound Sterling.
- The Trade Balance indicator also plays a significant role in determining the strength of the Pound Sterling.
Understanding the factors affecting the Pound Sterling can help investors make informed decisions in the forex market.