The GBP / USD pair continues to move within the global uptrend. In the morning in the UK, a report on the labor market was published, to which traders reacted very restrainedly. As predicted by experts, the unemployment rate in December rose from 5.0% to 5.1%. The number of applications for unemployment benefits decreased by 20 thousand, against the forecast of +35 thousand. The level of average wages in December increased by 4.7%, from 3.7% in November 2020.
Today, the representative of the Bank of England Gertyan Wlige said that the UK will face a very long period of low rates and it may last for more than one decade. Even if interest rates rise in the foreseeable future, they are unlikely to rise to levels of 4-5%.
In the afternoon, the market will focus on news from the US. The publication of the consumer confidence index and the speech of the head of the FED before the profile committee of the Senate are expected.
The bullish trend continues on the chart. There are no reversal signals. We are waiting for the growth of quotations above the level of 1.4100.
Resistance levels: 1.4100, 1.4200, 1.4300;
· Support levels: 1.4020, 1.3940, 1.3840.
The main scenario is a pullback to 1.4020 and growth above 1.4100
Alternative option - growth above 1.4100 from current levels
The current fundamental background is moderately positive. Considering purchases from the level of 1.4020