Pound soared against the greenback up to 1.6816 today, following the release of UK employment readings, showing a decrease in unemployment rate down to 6.9%. Despite the Central Bank has largely expressed that the threshold of 7.0% is not a reason to raise rates, the market continues to price in a sooner than expected rate hike in the UK, moreover with this news.
Having established above the 1.6800 level, the GBP/USD 4 hour chart shows a strong upward momentum coming fr om technical readings, while price broke above its 20 SMA now turning higher around 1.6740. Nevertheless, the 1.6820 year high offers for now strong intraday resistance, and if above, next level to watch comes at 1.6872, November 2009 monthly high. There’s not much in between this last and the 1.7000 key figure, probable target on a close at fresh year highs.
To the downside, the immediate support comes around 1.6770/80 wh ere the pair presents some intraday highs and if below 1.6720 comes next. Anyway, buyers will likely surge on retracements, preventing price to reach this last.