The British Pound set another major high against the US Dollar yesterday. The thing is that the price hit 1,7191, which is a new 5-year high! Still, the UK economic news that followed the price record turned out worse than expected, which made the price retrace a bit from the new high.
In particular, the year over year inflation seen in January 2014 dropped down to 1,9% in the UK, thereby going below the 2% target set by the Bank of England for the first time in 4 years. On top of that, yesterday's speech made by Janet Yellen influenced investors’ set of mind, thereby dropping GBPUSD further down. At this point, the price is currently trading close to 1,7125.
Today, the British Department of Labor released employment figures. In particular, the amount of jobless claims came out higher than expected, thereby exceeding the previous readings. At this point, the index is showing us -36,3К. The rate of unemployment is still the same at 6,5%.
The employment change index showed 254K, above the expected value of 243K but below the previous value of 345K. This economic indicator is more of informal nature.
GBPUSD. Near-Term Prospects
According to the comprehensive analysis made by Masterforex-V Academy , GBPUSD is currently trading within the scope of a long-term uptrend, which lead to setting a new 5-year high at 1,7191. Later on, the price retraced down to 1,7113, which is currently the intraday low.
Therefore, we can see the following technical picture: There is a bearish reaction to the entire upward move started from 1,6692. The current intraday low at 1,7113 is a major support level. Another one is 1,7067,. A break below them will give way to 1,7059 and 1,7010. As for resistance levels, these are 1,7150 1,7166, 1,7180 and 1,7188.
In order to specify the situation and make a trading plan, Masterforex-V Academy recommends switching to smaller-scale time frames.
