The British pound has moved sharply higher against the U.S dollar during the European trading session, hitting 1.3185, after the ONS upwardly revised UK Second Quarter Labor Costs to 2.4 percent from 1.6 percent, furthering expectations of a November 2nd UK rate hike from the BOE.
Intraday trading sentiment surrounding the British pound has improved after the ONS revision, while British Prime Minister Theresa May appears to have survived a leadership challenge from within the Conservative party.
The GBPUSD pair has now broken above its key 50-day moving average, at 1.3150, with price-action finding interim resistance from the 1.3185 level.
Going forward, sterling faces strong resistance from the 1.3222 level, which is last week’s break-out support, now turned resistance.
Key intraday support is currently located at the GBPUSD pairs weekly pivot point at 1.3166, and key 50-day moving average, at 1.3150. Support below 1.3150 is found at 1.3123 and the key 1.3090 level.
To the upside, intraday GBPUSD resistance is found at 1.3200, 1.3222 and 1.3257. The pairs key 200-hour moving average is currently located at 1.3271.
