GBP/USD underperforming

FXStreet (Guatemala) - GBP/USD is trading at 1.7113, down -0.13% on the day, having posted a daily high at 1.7145 and low at 1.7085.

Over the past 20 days, the exponential average closing price is 1.7080, and trending higher. However, GBP has been underperforming this week and Eric Theoret, Currency Strategist at Scotiabank has explained that with the consideration of modest wage growth highlighted in Wednesday’s employment release has weighed on UK yields, the UK-US spread and thus GBP, maintaining a focus on relative monetary policy a key theme among the G4 currencies. "BoE Deputy Gov. Cunliffe’s speech earlier was unrelated to monetary policy and thus had no discernible impact on GBP."

GBP/USD technicals mixed

Theoret explained that the GBP/USD short-term technical are mixed. “Momentum indicators are conflicted as we look to the short-term moving averages. GBP has broken below its 9 day MA (1.7126), and we await a break of recent support at the 21 day MA (1.7095)."

GBP/USD hourly levels

With spot trading at 1.7114, we can see next resistance ahead at 1.7115 (Hourly 20 EMA), 1.7116 (Daily Classic S1), 1.7119 (Hourly 100 SMA), 1.7123 (Weekly Classic PP) and 1.7125 (Hourly 200 SMA). Support below can be found at 1.7113 (Yesterday's Low), 1.7094 (Daily Classic S2), 1.7085 (Daily Low), 1.7083 (Weekly Low) and 1.7080 (Daily 20 SMA).

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