Wednesday 13th May at 09.30 BST (local time) sees the release of the UK Employment report comprising the Average Earnings Index, Claimant Count Change and the Unemployment Rate. This following the Tuesday release of the Manufacturing and Industrial Production data for the UK and the Monday Bank of England Monetary Policy Committee Meeting. Through this data, the bullish theme pre and post the General Election result has remained intact.
GBPUSD Remains Strong, Aims Higher
The Monday push above the important chart/ retrace barriers at 1.5552/69 set a still more bullish tone for Tuesday and this was highlighted by the break above 1.5620 for a bull tone Wednesday.
A post UK Election surge last Friday reinforced the base that had built above the 1.5088/87 area for upside risks into May.
- We see an upside bias for 1.5786 and maybe above closer to 1.5826.
- But below 1.5555 aims for 1.5500, which we would look to try to hold.
Short/ Intermediate-term Outlook – Upside Risks:
- We see a more positive tone with the bullish threat through 1.5786.
- Above here targets 1.5826, 1.5879 and maybe 1.6000 into May.
What Changes This? Below 1.5392 eases bull risks; through 1.5087 signals a neutral tone, only shifting negative below 1.4854.
Momentum: The 8-day RSI, short-term momentum is rising and has scope to go still higher this week.
2 Hour GBPUSD Chart
Daily GBPUSD Chart