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GBP / USD has tested the 1.4000 level

The GBP / USD pair is holding in the green trading zone. Pound reacted rather restrained to the publication of positive data on the labor market.

 

According to the presented report, the unemployment rate for the month decreased from 5.0% to 4.9% (forecast 5.1%). The employment rate decreased by 73 thousand, against the forecast of -150 thousand. Only the average wage growth indicator fell short of the forecast value: fact + 4.5%, forecast + 4.8%.

 

The restrained reaction of the GBP / USD pair is most likely due to the fact that the publication of data on the US labor market coincided with a wave of strengthening in the dollar index. As a result, these two factors compensated for the influence of each other.

At the beginning of the European trading session, the dollar began to recover rather quickly against the backdrop of rising yields of American Treasuries. If this growth continues today, we may see a fairly strong correction for the major currency pairs.

 

On the chart, the GBP / USD pair has tested the very strong resistance level of 1.4000. History shows that this level limits the growth of the instrument for a long time. On the first try, buyers are unlikely to overcome this resistance. Today we are waiting for the formation of a pullback movement.

 

  • Resistance levels: 1.4000, 1.4050, 1.4100;

 

  • Support levels: 1.3975, 1.3940, 1.3905.

 

The main scenario is a decline in the direction of the level 1.3940.

 

An alternative option is a breakdown of the resistance at 1.4000 and an increase to 1.4050.

 

The current fundamental background is neutral. We consider shorts from the level of 1.4000.

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