- Cable regains the composure following UK jobs report.
- The pair clinches fresh daily highs above the 1.2900 mark.
- UK Claimant Count Change rose by 20.8K in December.
The Sterling is deriving some support from the better-than-expected labour market figures today and is lifting GBP/USD beyond 1.2900 the figure, or daily highs.
GBP/USD bid on data, looks to Brexit
Cable gained extra ground following the publication of the monthly report on the UK labour market. In fact, Claimant Count Change rose by 20.8K in December, the key Average Earnings including Bonus rose 3.4% in November and the jobless rate ticked lower to 4.0% during the same period.
Looking ahead, developments around Brexit, as always, will dictate the sentiment around the British Pound. In this regard, and following PM May’s ‘Plan B’ released on Monday, investors will now focus on the probable amendments to it, a potential extension of Article 50, the ‘no deal’ scenario, the likeliness of a second referendum or the option involving a permanent customs union. It is worth recalling that the Parliament will vote again on January 29.
GBP/USD levels to consider
As of writing, the pair is up 0.07% at 1.2901 facing the next resistance at 1.3000 (2019 high Jan.17) seconded by 1.3072 (high Nov.14 2018) and then 1.3087 (200-day SMA). On the other hand, a breach of 1.2830 (low Jan.21) would expose 1.2779 (55-day SMA) and finally 1.2766 (21-day SMA).
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