STERLING TESTS DAILY PIVOT

The GBPUSD pair has moved towards the daily pivot point, at 1.2969, following the release of much better than United Kingdom jobs data.

Although UK wage data was largely disappointing, the jobs report remained encouraging, showing UK employment rose by 175,000. Also, the actual unemployment rate fell to 4.5%, which statistics show is a 42 year low.

Despite the move higher during the European session, sterling still remains bearish in the short term. Only one price trades above the 1.2969 area, can sterling then negate the current short-term bearish bias.

Furthermore, the GBPUSD pair remains bearish in the medium term, whilst trading beneath the weekly pivot point, at 1.2925, which now coincides with the H1 time frame 200 period moving average.

Key technical support is found at the H4 time frame, 100 period moving average at 1.2849. Further resistance is found at the current weekly price low, at 1.2811, and the 61.8% Fibonacci retracement level, at 1.2771.