The British pound gets support from the growth of wages

The publication of the employment report in the UK returned bulls to the pound in the market. In addition to the fact that the unemployment rate in the UK declined in January, the main support was given by the pound from data on wage growth. Which, in turn, indicates a positive increase in inflation, which was previously painted by the market.

As a result, the pound resumed growth across the entire spectrum of the market. The pair GBP/USD is traded near the highs of the month, limiting itself to an uptrend. The upper limit of the trend is a significant resistance – 1.4080-90. At the same time, further strengthening of the pound against the American is limited by overbought and waiting for data on the US. As a result, the above resistance is expected to be corrected before the release of data on the US.

Fig. GBP/USD. The current price is 1.4060.

Hanzenko Anton