GBP/USD Daily Technical Analysis – 18 January

GBP/USD Daily Technical Analysis

Sterling Moves Towards 1.2350 Level After The UK Employment Data

GBP/USD gathered the attention of fresh buyers on Tuesday’s session as the UK employment data was on focus. After the positive release of the Average Earnings Index of 6.7% rise in the September to November 2022 report, Cable strengthened and pushed the prices of the GBP/USD currency pair higher. Furthermore, while the unemployment rate in the UK remained unchanged at 3.7%, the number of people claiming unemployment benefits dropped to 19.7K in December from the prior month’s 30.5K reading.

The British Pound surged after the results of employment data as it raised expectations that the Bank of England would now come under extra pressure to increase the interest rate by another 50 bps.

On the other hand, the greenback was also facing trouble in strengthening its bullish trend as the January Empire State Manufacturing Index report came in red with a -32.9 reading. According to the report, business activity in New York fell sharply this month due to stalled employment growth.

GBP/USD Daily Technical Analysis

The GBP/USD has already crossed the moving average line (sky blue colour), rising higher near its closest benchmark of 1.2300. The buyers are pushing hard to break this level again, with significant support from MA. The RSI also signals that the currency pair has not yet reached its overbought region. Furthermore, MACD is also backing the same with its upside histogram, and the bullish forex trend is likely to remain for quite some time.

 The short-term overlook gives the impression that the next stop could be at 1.2350. However, prices must remain above 1.22190 to meet the said price goal.  The expected daily movement of the GBP/USD pair is to remain between 1.2143 to 1.2264. 

Daily Technical Levels:

Support Resistance

1.2143 1.2264

1.2096 1.2338

1.2022 1.2384

Pivot Point: 1.2217