Pound Skyrockets With More Than 200-Pip Rally
The GBP/USD pair advanced nearly 200 pips this Wednesday, and reaching a fresh 3-week high of 1.5472.
In the UK, mixed employment data showed that employment rose 140,000 in the three months to August while unemployment fell 79,000 resulting in an unemployment rate of 5.4%, its lowest in seven years. Wages missed expectations, but growth above previous month readings, with the average weekly earnings up 3% yearly basis.
The pair initially fell with the headline, but markets’ player quickly realized that solid wages along with lower inflation should give local consumption a nice boost over the upcoming months, putting back on the table a possible rate hike.
The 1 hour chart shows that the pair is now advancing beyond the 61.8% retracement of its latest daily decline at 1.5445, now the immediate support, whilst the technical indicators continue heading higher, despite being in extreme overbought territory.
In the 4 hours chart, the technical indicators maintain their bullish slopes well into positive territory, in line with the shorter term picture and with additional gains for this Thursday.