The Pound Sterling (GBP) has delivered a north-side vertical move marginally above the round-level resistance of 1.2900 as labor cost data has turned out more resilient than expected. The GBP/USD pair has picked immense strength as chances of a bulky interest rate hike from the Bank of England (BoE) have escalated, knowing the fact, that higher disposable income available to households will result in higher purchasing power, and eventually the overall demand will elevate further.
United Kingdom firms are offering higher wages to attract fresh talent amid labor shortages. Scrutiny of the Employment data indicates that the jobless rate has increased as firms have started avoiding credit due to higher interest rate attachment. It seems that the chances of a fat rate hike by the BoE will remain elevated as higher wage pressures are sufficient to offset the impact of a rise in the Unemployment Rate.
Technical Analysis: Pound Sterling aims decisive break above 1.2900
Pound Sterling has continued its three-day winning streak after overstepping Monday’s high at 1.2868. The Cable is approaching the Rising Channel chart pattern formed on a daily period in which each pullback is considered a buying opportunity for investors. Upward-sloping 50-and 200-period daily Exponential Moving Averages (DEMAs) indicate that the overall trend is extremely bullish. Bounded oscillators are demonstrating strength in the upside momentum.
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