- Cable remains bid amidst mixed labour market report.
- UK jobless rate ticked lower to 3.9% in January.
- A third meaningful Brexit vote appears delayed so far.
The Sterling has resumed the upside following Monday’s pullback, lifting GBP/USD to the area of daily highs near 1.390 in the wake of the UK labour market report.
GBP/USD bid on data, looks to 1.3300
Cable has initially moved to daily highs in the boundaries of 1.3290, although the bullish attempt run out of legs after mixed results from the UK labour market report.
In fact, the unemployment rate ticked lower to 3.9% during the first month of the year, Average Earnings surprised to the upside advancing 3.4% MoM during the same period and Claimant Count Change rose by 27.0K during February, missing consensus.
GBP, in the meantime, continues to look to developments on the Brexit front, where the likeliness of a third meaningful vote on May’s plan this week has been conditioned to improvements in talks between the government and the DUP and noticeable changes to PM May’s original proposal.
What to look for around GBP
The Sterling is expected to remain under scrutiny this week in light of a potential third meaningful vote on May’s UK-EU divorce plan. The House of Commons will probable vote on Wednesday although it all appears to hinge on a potential agreement between the Government and the DUP as well as noticeable changes to May’s original proposal.
GBP/USD levels to consider
As of writing, the pair is gaining 0.13% at 1.3270 facing the next hurdle at 1.3350 (high Feb.28) seconded by 1.3380 (2019 high Mar.13) and then 1.3472 (monthly high Jun.7 2018). On the downside, a breach of 1.3183 (low Mar.18) would aim for 1.3168 (21-day SMA) and finally 1.2984 (200-day SMA).
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