• The UK unemployment rate dipped to 5% in January from 5.1% the month before rather than rising to 5.2% as analysts had predicted.
  • There may be more reaction to Wednesday’s UK inflation report, which is expected to show a small rise in the year/year headline rate.


During the prior weeks, the GBP/USD traded in channel down and channel up patterns that represented the rate’s larger scale sideways trading between the 1.3800 and 1.4000 mark.

GBP/USD has dipped below 1.3775, which was the previous March low, and also provided support in mid-February. The dollar is gaining ground ahead of Fed Chair Powell’s testimony. The UK reported an unemployment rate of 5%, better than expected, but a leap of 86.5K in jobless claims.

At current levels, the cable is back to where it was early in February. Momentum remains to the downside and the pair trades below the support breakout zone 1.3800 which is a critical round figure mark to have an eye on.

If the break below 1.3775 is confirmed, the next cushion is at 1.3745, which capped GBP/USD in early February. It is followed by 1.3590, a support line from the same period, and then by 1.3610 and by 1.3565.

Some resistance is at 1.3810, a support line from last week, followed by 1.3860. Further above is the upper boundary of the trading range resistance at 1.400 psychological round figure mark

The material has been provided by InstaForex Company – www.instaforex.com

Leave your vote

🚀If you want to get a Forex Robot Coded as per your trading strategy but are unable to do so because of the high price for the Robot then you can take advantage of the CROWD FUNDING campaigns feature. ✔ These are some crowd funding campaigns for Forex Robots, which when completed can provide the very same Forex Robot to the participants at an average price of $5-$10 per participant. ✔ You either participate in one of the already listed campaigns or send us your Forex strategy : Submit Crowd Funding Campaign , for which you would like the Forex Robot to be coded. A Crowd Funding Campaign would then be started for the same . ✔ All you have to do later on is to share the campaign online with your friends to encourage more people to participate in the campaign.

As a result, each participant can get that Forex robot for just a campaign contribution of $5 (which is the minimum). Participants can back the campaign by anything above or equal to $5 to reach the funding goal to close the campaign.