GBP/USD consolidates gains after U.K. jobs, earnings data

ForexNewsNow | Published on October 13, 2010 at 4:52 am

GBP USD analysis - a pile of poundsNEW YORK (Forex News Now) – Sterling consolidated gains versus the dollar on Wednesday, after a disappointing report on U.K. jobless claims was tempered by upbeat data on Britain’s unemployment rate and average earnings.

In early European currency market trading, GBP/USD hit 1.5876, up 0.42 percent on the day.

Britain’s statistics bureau said earlier that the number of Britons claiming unemployment benefits, jumped by 5,300 in September, far higher than forecast.

However, the report coincided with data on the U.K. unemployment rate, which dropped unexpectedly in September, and average earnings in Britain, which rose more than forecast.

According to GBP USD analysis, cable was likely to touch support around the low of Sept. 30, 1.567, and encounter resistance around the high of Oct. 7, 1.6018.

Sterling’s gains also came after the U.S. Federal Reserve moved a step closer on Tuesday to pouring more money into the faltering U.S. economy, after a majority key policymaking panel agreed to consider steps to stimulate demand.

Elsewhere, the pound rose versus the yen: GBP/JPY traded at 130.02, up 0.64 percent, according to intraday analysis.

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