GBPUSD – bulls crack strong barriers en-route to 1.30 barrier

GBPUSD continues to trend higher and probed above 1.2900 barrier in early Tuesday, after cracking strong resistances at 1.2884/93 (200WMA / monthly cloud base).

Sterling received fresh boost from UK labor data which showed the highest wage growth on record (three months to May 7.3% vs 7.1% f/c), adding pressure on BoE, though signal was tempered by unexpected jump in Britain’s unemployment (May 4.0% vs 3.8% Apr / f/c), pointing to cooling labor market.

Pound hit new 2023 high and the highest since Apr 2022 on Tuesday morning, contributing to bullish signal on Monday’s close above former annual high at 1.2848.

Bullish daily studies underpin the action, with close above 200WMA to generate strong bullish signal for push towards psychological 1.30 barrier, however overbought conditions may slow bulls.

Former top reverted to initial support (1.2848) which should ideally contain, though deeper pullback cannot be ruled out, requiring caution.

Extended dips should find ground above rising daily Tenkan-sen (1.2752) to keep near-term bias with bulls, while break here will put larger bulls on hold and risk stronger correction.

US inflation data on Wednesday mark one of key market events this week and will be closely watched, as forecasts show steady decline in consumer prices in the US, which would make the dollar less attractive and offer fresh support to sterling, on release at/below expectations.

Res: 1.2913; 1.2946; 1.3000; 1.3045
Sup: 1.2848; 1.2800; 1.2787; 1.2752