GBP/USD (current price: 1.3060)
Cable is back above the 1.30 level following several bullish releases regarding the British economy recently. The U.S. Dollar has been relatively weak in the last two weeks, as traders think that a rate hike by the FED is not likely in the coming months. The British Employment Report came in with mixed numbers yesterday as wages grew by less than expected but the Unemployment Rate remained unchanged at the low level of 4.9%, pointing to a still strong labor market.
Our assessment: GBP/USD is still in a declining long-term trend, but the strong support near 1.30 is still holding, and that might lead to a meaningful correction especially if the string of positive British surprises continues.
