GBP/USD: capped ahead on 1.55 handle

By FXStreet FXStreet (Guatemala) – GBP/USD has been consolidating the rally that started in Europe when the major reached a high of 1.5528.

GBP/USD rallied in the UK’s employment figures with strong wages, and this was up 2.9% in the three months ending in July while the unemployment rate fell its-self to 5.5%. Carney was also testifying before a parliamentary Committee on inflation, and offered a bullish rhetoric with a focus of wage growth picking up in a “solid” UK. The pound went from the 200 SMA at 1.5369 to 1.5423 where it garnered further demand until aforementioned highs.

GBP/USD levels

Technically, GBP/USD broke the 20 day ma at 1.5450 and remains bullish above the 200 day ma at 1.5350. Karen Jones, chief analyst at Commerzbank explained that, “Above lies 1.5530 (55 day ma), the 1.5615 August high and the 1.58175 recent high. Currently a rally to 1.5540-1.5615 would be allowed for.”

Valeria Bednarik, chief analyst at FXStreet explained, “In the 4 hours chart, the technical indicators have lost their upward strength and turned flat above their mid-lines, but the price has extended well above its 200 EMA, currently around 1.5460, and a key support for the upcoming hours.”
For …read more

Source:: FX Street