Fundamentals
The UK data was extremely encouraging for the UK economy especially, the average wage growth was astonishing. The average earnings index cam in at 1.4% while the forecast was at 1.3%. The claimant count change also fell sharply with the final reading of -26.9K and the previous reading was at -20.4. This represents that the job market is tremendously robust. However, traders are not excited about the news and this is the reason we have not seen any move in the GBP/USD pair. Inflation is the key there which is a concern for the MPC members and they cannot ignore this before they make any conclusion to raise the interest rate.
Minority in the MPC members are seeing that the UK wage growth will rise sharply and this is a bid deal for them, but one thing is certain that all MPC members are paying very close attention to this mandate, but despite that, the key word is Minority there, and unless this word is replaced with majority, hike in the interest rate may not take place any time soon.
Technical Analysis
The pair has formed a symmetrical triangle pattern on a 30 minute time frame. The general trend on a bigger time frame is towards the downside, therefore, the odds are stacked that this could break toward the downside.
Important Zones
1.5475-1.5425 Support
1.5941-1.5904 Resistance
Disclaimer: The above is for informational purposes only and NOT to be construed as specific trading advice. responsibility for trade decisions is solely with the reader.