Sterling Strengthens Sharply Ahead of U.K.’s Job Data, 25+ PIP Volatility Likely in GBP Parity; April 20, 2021

U.K. Claimant Count Change & Unemployment Rate

Today U.K. has scheduled to release job data at 0600 GMT/1130 IST. It’s the first indication of the employment situation, released a month earlier than the Unemployment Rate. Although it’s generally viewed as a lagging indicator, the number of unemployed people is an important signal of overall economic health because consumer spending is highly correlated with labor-market conditions. Unemployment is also a major consideration for those steering the country’s monetary policy. If the Actual data of Jobless Claims and Unemployment Rate come less than forecasted, it will be beneficial to GBP.

Let’s see how GBP has reacted during the previous data release:

March 23:

Feb 23:

Technical View:

GBP/USD: The pound strengthens sharply on Tuesday and hits fresh 6 – week high at $1.3997 mark. The pair made intraday high at $1.4008 and low at $1.3957 mark. A day chart and H1 chart with triple EMA confirms the uptrend for the time being. A sustained close above $1.4000 requires for the upside rally. Alternatively, a consistent close below $1.3962 will test further supports.

Key Resistances: $1.4026, $1.4061, $1.4086, $1.4107, $1.4138

Key Supports: $1.3962, $1.3948, $1.3927, $1.3900, $1.3876

Take a look and do trade wisely!
Good Luck