Cable breaks 1.5700 after higher wage growth,targets 1.6000
GBP/USD is trading near major resistance 1.5700 and market awaits BOE inflation report.The BOE is expected to revise slightly up this year inflation on back of rising oil prices and UK's economic recovery.
UK claimant count change fell by a seasonal adjusted 12600 in Apr, compared to forecast of 20000. Unemployment rate ticked down to 5.5% in Apr compared to 5.6% in Mar.
The UK March average earnings including bonus rose to 1.9% compared to forecast of 1.7%.Thus increase in wage inflation is positive for cable as it increases the chance of rate hike by BOE.
Technically GBP/USD is facing support around 1.5640 and any break below will target 1.5590/1.5550 in short term.
The pair’s major resistance is around 1.5750 and break above will target 1.6020 (100% projection of 1.4564 to 1.54977 from 1.50880).
Indicator (1 Hours chart)
CCI (50) - Buy
CCI (14) – Buy
Ichimoku- Buy
It is good to buy at dips around 1.5720 for the target of 1.5995 with stop around 1.5590
UK claimant count change fell by a seasonal adjusted 12600 in Apr, compared to forecast of 20000. Unemployment rate ticked down to 5.5% in Apr compared to 5.6% in Mar.
The UK March average earnings including bonus rose to 1.9% compared to forecast of 1.7%.Thus increase in wage inflation is positive for cable as it increases the chance of rate hike by BOE.
Technically GBP/USD is facing support around 1.5640 and any break below will target 1.5590/1.5550 in short term.
The pair’s major resistance is around 1.5750 and break above will target 1.6020 (100% projection of 1.4564 to 1.54977 from 1.50880).
Indicator (1 Hours chart)
CCI (50) - Buy
CCI (14) – Buy
Ichimoku- Buy
It is good to buy at dips around 1.5720 for the target of 1.5995 with stop around 1.5590