GBPUSD Technical Analysis – Finding Support

The British pound currency has continued to hold above the 1.2500 level against the US dollar after a quick dip towards the 1.2450 area after the buck strengthen in the aftermath of the Bank of England rate decision.

We are seeing GBPUSD gain strength due to improved confidence about the US debt ceiling and also a push higher from technical buying below 1.2500.

Traders now await the UK jobs data. The number of people in work in the United Kingdom went up by 169,000 in the three months to February 2023, well-above market expectations of a 50,000 rise and accelerating from a 65,000 growth in the previous period.

This marked was the largest increase since April 2022, as both full-time and part-time self-employed grew during the latest three-month period. Also, part-time employees increased, while full-time employees fell but still above pre-pandemic levels.

Worryingly, the number of people claiming for unemployment benefits in the UK rose by 28,200 in March of 2023, the first increase in three months, and the biggest since February of 2021

Looking at sentiment data and how traders feel about sterling, the ActivTrader Market Sentiment tool shows that traders are growing more bearish despite the recent sharp price reversal.

With 63% of traders are currently bearish and it should be noted that this current sentiment reading is highlighting that sterling still has much scope to trade even higher also.