The pound slid on Wednesday and was 0.25% weaker during the London session, with the GBPUSD pair trading below the important 1.40 level again on an important day.
Later in the session, the UK labor market data are due, with the jobless claims expected to improve marginally to 2,300 from 8,600 previously. Wage growth should remain at 2.5% year-on-year. Somewhat positive data might provide some support for the pound.
Additionally, the inflation report hearings will follow, where the BoE governor Carney and other MPC members will testify on inflation and the economic outlook before Parliament’s Treasury Committee.
From the US dollar perspective, the FOMC minutes from the last Fed meeting will be released. However, as no changes to monetary policy were made at the latest meeting, there should be no news in this minutes. Therefore, volatility might not be elevated after the release.
The resistance appears to be at the 1.40 mark and if broken, bulls might push the GBPUSD pair toward the 1.4050 resistance. On the other hand, the support for today’s trading is around 1.3930 and if not held, sterling might decelerate to the short-term bullish trend line near 1.3880. In all cases we strongly recommend to have rigorous money and risk management.
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