GBP/USD Crosses 1.2550 Resistance After UK Jobs Data
The recent jobs data from the UK has shown that wage inflation remains high during May. After the news, the GBP/USD pair extended its gains and crossed the 1.2550 resistance zone during the Tuesday trading session.
Overall, the UK jobs data has boosted the GBP against the USD and several other currencies. Later today, the inflation data from the US will provide more clarity to the GBP/USD.
1.2600 Is The Next Resistance For GBP/USD
Now that the 1.2550 resistance is turned into a support, the next important level is 1.2600, which is a static level. In addition, the RSI(14) added on the 4-chart shows GBP/USD is in overbought territory.
This suggests that the GBP/USD pair will likely stage a corrective move before attempting to cross the 1.2600 resistance zone.
On the contrary, the 1.2550 is the first support, followed by the 1.2520 support, which also coincides with the 61.8% fib retracement. If the Pound/Dollar pair closes below these levels, it will force the pair toward the 1.2480 level.
But if GBP/USD crosses 1.2600 with good momentum and converts it into a support, the next target will be 1.2650.
On Monday, the Pound-Dollar pair took advantage of the USD weakness and reached its month low near 1.2590. But after the economic release from the USA and UK, that might change.
For now, the market mood is very upbeat, which means the funds are flowing out of USD to risky assets such as the GBP. In addition, the FTSE 100 index is also up by 0.3%, while the major US indexes are positive as well.
According to expert forecasts, the USD will get even weaker after the Fed meeting as there will be no rate hikes at all. On the other hand, this will allow other currencies, such as the GBP, to gain the upper hand. After all, it appears that BoE is ready to rate hikes at the next meetings while there is no such sign from the Fed.