GBP/USD Buyers in control post-UK jobs, nears 1.3200

A better-than expected UK jobs report-driven rally in the GBP/USD pair gained further momentum in the mid-European session, pushing the major closer towards 1.32 handle.

GBP/USD tests 5-DMA at 1.3195

Currently, GBP/USD now rallies +0.61% to fresh session highs of 1.3192, having found solid support at 1.3080 levels. The cable sees a sharp more-than 100 pips rally after the pound received fresh impetus from robust employment report from the UK economy.  

The UK’s official jobless rate dropped to 4.9% versus 5.0% last, with the hiring process unaffected by the Brexit concerns. The number of people claiming jobless benefits ticked lower from 12,200 to 400. The claimant count rate stayed at 2.2%, same as that seen in May.

Moreover, persisting risk-on rally in the European equities combined with BOE’s optimistic outlook, also added to the renewed strength seen behind the major. A monthly survey by BOE revealed that the bank sees no clear evidence of sharp Brexit slowdown.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.3238 (1h 100-SMA), above which 1.3300 (round number) would be tested. On the flip side, support is seen at 1.3169/64 (20 & 10-DMA) below that at 1.3065 (Daily low).