Today's data on the UK labor market turned out to be positive, which buyers of the British pound did not fail to take advantage of. Since it is no longer early in the morning, but the positive British labor statistics are actively being played back by sterling purchases, I will try to be short and to the point. So, the unemployment rate in the UK coincided with the expectations of economists and amounted to 4.6%, which is not bad at all. But the number of applications for unemployment benefits in August fell sharply compared to the previous month (minus 7.8 thousand), which amounted to minus 58.6 thousand. As you know, the gap is huge. I believe that this positive factor pulls up the "British," which is actively growing in pair with the US dollar, trading near a very strong technical level of 1.3860.
Yesterday's trading on the pound/dollar currency pair had mixed dynamics. After getting down from the Ichimoku indicator cloud and going under the most important level of 1.3800, the bulls for the pound started up. They began to actively buy the British currency, considering these prices quite acceptable. The red line of the Tenkan Ichimoku indicator also supported them. The chart clearly shows what great support is provided to the price.
Nevertheless, despite all the positives, the technique remains based on strong data on the labor market. I suggest paying special attention to the resistance level of 1.3890, where the maximum values were shown on September 3. The next highs (September 10) were already lower (at 1.3887), and the pair rose only to 1.3881 and retreated sharply. All this indicates a very strong resistance of sellers in the area of 1.3890, and if the bulls for the pound cannot overcome it, all their previous attempts will be in vain, and the pair will inevitably turn in the south direction. In principle, you can do it higher, but for now, you need to break through the mark of 1.3890. Despite yesterday's bullish candlestick pattern and today's strong growth, thanks to good statistics, not everything is so clear and simple. Yes, I consider buying the main trading idea, but buying under the strong resistance level of 1.3890 is very risky, especially since the landmark level of 1.3900 passes above it.
Take a pound on pullbacks. You can try buying from the current prices or wait for more attractive ones on the approach to 1.3845, where the 50 simple moving average passes a little lower. However, I almost forgot to mention an equally important detail for GBP/USD. Today, at 13:30 London time, the US consumer price index will be released, which will show the degree and properties of the inflationary component in the States. If these statistics support the dollar, a lot can change in the technical picture of GBP/USD. Be vigilant and attentive.