FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that GBP/USD pair advanced nearly 200 pips this Wednesday, and reaching a fresh 3-week high of 1.5472.
Key Quotes:
"In the UK, mixed employment data showed that employment rose 140,000 in the three months to August while unemployment fell 79,000 resulting in an unemployment rate of 5.4%, its lowest in seven years. Wages missed expectations, but growth above previous month readings, with the average weekly earnings up 3% yearly basis.
The pair initially fell with the headline, but markets' player quickly realized that solid wages along with lower inflation should give local consumption a nice boost over the upcoming months, putting back on the table a possible rate hike.
The 1 hour chart shows that the pair is now advancing beyond the 61.8% retracement of its latest daily decline at 1.5445, now the immediate support, whilst the technical indicators continue heading higher, despite being in extreme overbought territory.
In the 4 hours chart, the technical indicators maintain their bullish slopes well into positive territory, in line with the shorter term picture and with additional gains for this Thursday."
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