GBP/USD trades lower on weak wage growth, good to buy on dips
• Cable declines sharply after hitting high of 1.32795 at the time of writing. The pair jumped sharply yesterday after better than expected UK GDP data and is currently trading around 1.3224.
• Markets pricing implies 90% chance of rate hike in Nov after this positive GDP data but wage growth is major factor which can prevent BOE to hike rates. Wage growth is currently less than inflation. UK full time workers inflation adjusted weekly earnings decrease by 0.4%.
• The near term major resistance is around 1.3230 and any break above will take the pair to next level till 1.330/1.33374 (Oct 13th 2017 high).
• On the lower side, 1.3170 (55- day EMA) will be acting as major support and any break below will drag the pair down till 1.3100/1.30750 /1.3270 level. Bearish continuation can be seen only below 1.3030.
It is good to buy on dips around 1.3205-1.3210 with SL around 1.3170 for the TP of 1.3300/1.33380.
• Markets pricing implies 90% chance of rate hike in Nov after this positive GDP data but wage growth is major factor which can prevent BOE to hike rates. Wage growth is currently less than inflation. UK full time workers inflation adjusted weekly earnings decrease by 0.4%.
• The near term major resistance is around 1.3230 and any break above will take the pair to next level till 1.330/1.33374 (Oct 13th 2017 high).
• On the lower side, 1.3170 (55- day EMA) will be acting as major support and any break below will drag the pair down till 1.3100/1.30750 /1.3270 level. Bearish continuation can be seen only below 1.3030.
It is good to buy on dips around 1.3205-1.3210 with SL around 1.3170 for the TP of 1.3300/1.33380.