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GBP/USD slid below 1.68 on UK data, but not ready to go lower

FXStreet (Moscow) - GBP/USD traded just above 1.6820 before the British Labor data release, moving to 1.6792 low post data.

First data is out

Finally we’ve got the first piece of market moving reports out of the UK, and the data painted an interesting picture with Claimant Count Change worse than expected at 33.6K vs -30.0K, Average Earnings excluding Bonus lower at 0.6% vs 0.7%, and ILO Unemployment Rate at 6.4 as expected. The pound moved to 1.6792 right after the release, as the market practically lost the hope to see the pound rising and the BOE tightening. Most attention was paid to Earnings component, as the wage inflation could be the key factor to convince the MPC in rate hike urgency. Now the focus of the market turns to the BOE Quarterly report that may either drawn, or rescue the pound.

What are today’s key GBP/USD levels?

Today's central pivot point can be found at 1.6795, with support below at 1.6774, 1.6735 and 1.6714 with resistance above at 1.6834, 1.6855, and 1.6894. Hourly RSI is bullish at 70, while hourly Moving Averages are largely bullish, with the 200SMA bearish at 1.6829, and the daily 20EMA bearish at 1.6910.

UK: Claimant Count Change up 33.6K in July, against forecasts

The number of unemployment people in the UK rose by 33.6K in July, following a 39.5K drop registered in June, National Statistics reported on Wednesday. Analysts expected a 30.0K fall. The Claimant Count Rate was at 3.0%, following a 3.1% reading.
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