GBP/USD recovers, focus on 1.6800

FXStreet (Edinburgh) - The sterling is trading on a firmer footing now, pushing the GBP/USD closer to the critical barrier at 1.6800.

GBP/USD focus on UK data, QIR

The pair is looking to put further distance from recent multi-week troughs near 1.6760 ahead of the key UK labour market data and the BoE’s Quarterly Inflation Report, both due on Wednesday. Consensus expects the unemployment to have decreased by 30K in July and the jobless rate to have descended to 6.4% in the three months ended in June. “While the strong resistant at 1.6810 is still intact, the expected GBP weakness did not materialize. The current price action suggests limited downside risk for now but even a move above 1.6810 is likely limited to the next resistant at 1.6830. Strong support is at 1.6760/65”, commented Quek Ser Leang, Market Strategist at UOB Group.

GBP/USD levels to consider

At the moment the pair is retreating 0.05% at 1.6778 with the next support at 1.6740 (61.8% of 1.6460-1.7192) ahead of 1.6723 (low Jun.5) and finally 1.6699 (low Jun.4). On the flip side, a break above 1.6796 (high Aug.11) would aim for 1.6835 (high Aug.8) and then 1.6840 (10-d MA).