GBP/USD attempts consolidation at 1.6360

FXstreet.com (Chicago) - GBP/USD seems to find resistance around weekly highs at 1.6372 to now attempt a consolidation above the 1.6360 zone. Advancing 0.60% so far, the pair erases previous weekly losses ahead of the Fed’s interest rate and monetary policy announcements.

Better than expected job market results in the UK

The market participants’ reactions to recently was positive for the pound after an unchanged BoE vote cut was announced and the claimant count change was better than expected at -36.7K vs. expected -35K. Similarly, the ILO unemployment rate was 7.4% vs. expected and past 7.6%. In the US, the Fed’s decision and FOMC’s economic projections are expected.

GBP/USD Technical Levels

Price action reveals a strong spike is maintained accelerating the speed line that had originated with yesterday’s reversal move and bearish channel break. With primary and secondary trends diverging, the latter supporting a bullish move, the pair finds valuation resistance around 1.6372 weekly highs. Offered at 1.6360, the pair navigates between the supports aligned at 1.6348 (December 16th highs), 1.6288 (December 5th lows) ahead of 1.6237 (November 22nd highs) and the resistances set at 1.6418 (December 11th highs), 1.6464 (December 10th highs) followed by 1.6554 (May 15th 2011 highs). According to the FXstreet.com trend index on one-hour timeframe analysis, the pair is slightly bullish and flows above the EMA20.