STERLING TESTS 1.3100 LEVEL
Sterling has recovered towards the 1.3100 handle, after the UK Office for National Statistics have admitted to miscalculating UK employment costs. Revisions from the ONS out today, are expected to show higher UK employment costs, further pressuring the Bank of England to raise interest rates this year.
Trading sentiment surrounding the GBPUSD pair remains mixed, despite the Asian session bounce towards 1.3100. Uncertainty still remains around Brexit negotiations, with British Prime Minister Theresa May due to give a key-speech in UK parliament later today.
The GBPUSD pair is currently trading below its 50-day moving average, at 1.3150 and above its key 100-day moving average, at 1.3053.
A recovery above the 1.3150 level is needed for the GBPUSD pair to find renewed buying interest this week. A daily close below the 1.3053 level should encourage further selling in the British pound.
Key intraday technical support is seen at 1.3080 and 1.3053. Once below the 1.3053 level, further support is located at the former weekly price-low at 1.3027 and the key 1.2990 level.
To the upside, key resistance above the 1.3100 level is found at 1.3121 and the key 1.3150 level. Further resistance above 1.3150 is found at the pairs weekly pivot point, at 1.3166, and the 100-hour moving average, at 1.3180.