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GBP/USD – Pound Rebounds, Punches Above 1.31

The British pound has flexed some muscle, as GBP/USD has climbed above the 1.31 line for the first time in two weeks. Will the upward move continue?
Kenny Fisher
GBP/USD weekly chart, November 04, 2019

GBP/USD has taken a pause on Thursday, after posting strong gains a day earlier. Currently, the pair is trading at 1.3137, down 0.01% on the day. GBP/USD has gained close to 1.0% this week and is on track for its strongest weekly gain since early December. In economic news, there are no British releases. Investors will be keeping a close eye on the manufacturing and services PMIs, which will be published on Friday.

Pound Gains Momentum After Jobs Data

Worried investors have been scouring for some positive economic news out of the U.K, and Tuesday’s employment releases delivered, helping the pound post strong gains. Wage growth remained steady at 3.2% in November, edging above the forecast of 3.1 percent. Unemployment rolls dropped sharply to 14.9 thousand in December, down from 28.8 thousand a month earlier. This marked the lowest level since January. There was no change in the unemployment rate, which remained pegged at 3.8 percent.

Technical Analysis

With GBP/USD posting strong gains on Wednesday, the 1.3050 line has switched to a support role. Below, there is support at the key 1.3000 level. As well, the 50-EMA remains situated at this line. On the upside, there is resistance at the round number of 1.3200.

GBP/USD 1-Day Chart

Pacific Currencies – Daily Summary

USD/CNY

It’s been a busy week for USD/CNY. After hitting an 8-month low on Monday, the Chinese yuan has sharply reversed directions and climbed over 1.0% this week. One reason for this move is profit-taking by investors and traders. Currently, the pair is trading at 6.9293, up 0.36% on the day. There are no Chinese events on the schedule.

AUD/USD – Aussie Dips to 5-Week Low

AUD/USD has reversed directions on Thursday and posted considerable gains. The pair is currently trading at 0.6872, up 0.45% on the day. The upward move was in response to solid employment numbers in December. Employment Change showed that the economy created 28.9 thousand jobs, easily beating the November estimate of 12.2 thousand. As well, the unemployment rate dropped from 5.2% to 5.1%, its lowest level since March.

NZD/USD

NZD/USD continues to hover close to the round number of 0.6600. Currently, the pair is trading at 0.6594, down 0.03% on the day. In economic news, New Zealand Visitor Arrivals, a useful indicator of the strength of the tourism sector, fell 0.9% in November, its sharpest drop since April. Later on Thursday, New Zealand releases CPI for the fourth quarter, which is expected to slow to 0.4%, down from 0.7% in Q2.

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