GBP/USD clinches highs near 1.4070 post-UK jobs

• Cable advanced to the 1.4070 region following UK jobs report.
• UK’s jobless rate dropped to 4.3% in January, surpassing estimates.
• Later in the day, the FOMC is seen raising rates by 25 bp, ‘Dots plot’ in centre stage.

The bid tone around the Sterling is now accelerating and is lifting GBP/USD to record fresh daily highs in the 1.4060 region.

GBP/USD stronger on data, looks to Fed

Cable is reverting yesterday’s ‘inside day’ and has regained the upper end of the range following the latest jobs report in the UK.

In fact, the unemployment rate dropped to 4.3% during January, surprising markets to the upside. In addition, Claimant Count Change rose by 9.2K and Average Earnings inc. Bonus rose 2.8% during January, coming in above initial estimates.

Ahead in the week, the BoE will hold its meeting tomorrow, with consensus expecting no change in the refi rate and the MPC voting unanimously to keep the monetary status quo unchanged. Additionally, February’s Retail Sales will also be published.

GBP/USD levels to consider

As of writing, the pair is gaining 0.49% at 1.4066 facing the next hurdle at 1.4088 (high Mar.19) seconded by 1.4146 (high Feb.16) and then 1.4280 (high Feb.2). On the flip side, a break below 1.3946 (10-day sma) would aim for 1.3886 (low Mar.16) and finally 1.3782 (low Mar.8).