Maintaining the positive trend at the opening early last week, the Pound currency extended its rise in value in the European session yesterday and continued into the next session.
The Pound received support from the latest UK jobs report yesterday with the change in jobless benefit claims data being low at around 300 only compared to the forecast of 28,200 for November.
The 3-month average wage index ending in October rose strongly to 5.25%, beating the forecast of 4.6%, while the UK unemployment rate in October remained at 4.3% as expected.
However, investors remain cautious in trading the Pound ahead of the UK inflation report in the European session today (Wednesday) before the focus shifts to the Bank of England (BOE) policy meeting on Thursday which will accompany the FOMC meeting.
Judging by the movement on the GBP/USD currency pair chart, the price increase was seen in the early European session yesterday as the data release tested the resistance level at 1.27000.
Continuing with the New York session, the price managed to continue its rise above the resistance with a new high reached near 1.27300.
However, the price retreated slowly at the close of the session before leveling off at the 1.27000 zone in the Asian session this morning.
The price is still above the Moving Average 50 (MA50) support line on the 1-hour timeframe on the GBP/USD chart, still giving a bullish signal for the price.
If the rise is successfully resumed from the 1.27000 zone, the target is to reach a height of 1.28000.
If observed, the zone is an important resistance that the price has been tested for the past few weeks but has not been successfully breached.
Meanwhile, for the expectation of a price decline if it occurs, the nearest support zone of the price is around 1.26000 is expected to be tested.
The decline is extended lower if it passes the zone, it will record the latest 4-week low with the target shifting to 1.24000.
