GBP/USD firmer, eyes on 1.6800

FXStreet (Edinburgh) - The sterling is trading on a firmer note on Wednesday, lifting the GBP/USD to the boundaries of the critical barrier at 1.6800 the figure.

GBP/USD bolstered by data

The pound managed to break above the 1.6740/50 range and is thus extending its recovery after yesterday’s deep pullback. Very auspicious data from the UK labour market (jobless art at 6.6%, Claimant at -27.4K) prompted the current GBP rally to the vicinity of the 1.6800 handle. “Resistance should be at 1.6865/80 and then 1.6925, above which, on any weekly close, the way opens for a lunge higher into the 1.70s. At this stage we watch 1.6865/80 resistance as this will inform on how strong the sell off has potential to be”, commented Paul Robson, Senior FX Strategist at RBS.

GBP/USD relevant levels

At the moment the pair is up 0.20% at 1.6790 facing the next hurdle at 1.6817 (high Jun.10) ahead of 1.6822 (30-d MA) and then 1.6845 (high Jun.6). On the downside, a breach of 1.6738 (low Jun.11) would expose 1.6729 (daily cloud base) and finally 1.6723 (low Jun.5).