Cable pinned just under the 1.31 handle ahead of UK jobs report release

Technical Analysis

Author: Justin Low | gbpusd

Economic data comes back into focus for the pound

GBP/USD H1 16-04
Cable is resting just under the 1.3100 handle currently but price is still holding above the key hourly moving averages as buyers defended a test of the 100 and 200-hour MAs (red and blue lines respectively) earlier today.

That remains the key level to watch out for in any downside move later while near-term upside remains limited by swing region resistance around 1.3120-30 for the time being.

The key risk event today for the pound will be the release of the UK jobs report at 0830 GMT. With Brexit developments taking a breather, the focus of near-term price action in the pound will switch back towards economic data releases.

In the bigger picture, the data here holds little meaning as Brexit will ultimately be the key mover for the pound. But I would expect the data releases to inject some intra-day volatility in the currency if we do get significant beats/misses.

Aside from this release, there will also be UK inflation data (tomorrow) and retail sales data (Thursday) before we get to Good Friday. So, just be wary of potential near-term price movements in the pound in relation to economic data releases this week.

Looking at the daily chart though:

GBP/USD D1 16-04
Cable is resting in a narrow wedge and topside is limited by resistance, which sits at 1.3112 today. Meanwhile, the downside support of the wedge is seen at 1.3003. Those two levels will be a key focus in the grand scheme of things as we look for a price breakout in cable.

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