GBP/USD Calmly Flat Awaiting Turmoil In New York Session


The UK employment data report published in the European session yesterday was seen to put pressure on the Pound currency trading following the published reading warning on the labor sector.

A relatively sharp change in UK jobless benefit claims for May came in at 50,400, well ahead of forecasts of 10,200.

This caused concern as the unemployment rate in April also increased to 4.4% compared to 4.3% previously.

However, the movement of the Pound against the US dollar is seen as equal as the market is still cautiously awaiting important indicators in the New York session today.

The inflation data of the United States (US) will bring turbulence at the beginning of the session before the focus is on the results of the FOMC meeting that will follow later.

But before that, the UK economic growth data report will be observed first in the European session shortly which will influence the movement of the Pound.

On the GBP/USD chart, the price is still holding above the 1.27000 level after the decline at the beginning of the week tested the support zone, but the price bounced back.

The price movement in the range of 40 pips on Tuesday yesterday in addition to hovering at the Moving Average 50 (MA50) line on the 1-hour time frame on the chart has not given a clear signal for further price direction.

If the price shows an increase, the focus returns to the 1.28000 resistance zone that has been tested over the past week but has not been successfully broken.

If the resistance zone is crossed by the price after this, the latest high level will be recorded and the price target will shift to the 1.29000 zone.

On the other hand, if the price shows a downward pattern again, the 1.27000 support zone will continue to be tested to be broken.

With the impact of the reaction on today's important data, the market can expect a drastic price drop to take place towards lower levels around 1.26000.