GBP/USD corrective drift extends following softer UK wage data. Scotiabank economists analyze the pair's outlook.
GBP/USD decline maintains corrective look
Average weekly earnings growth slowed to 5.6% in the three months through January (down from 5.8% previously and slightly below consensus estimates of a 5.7% gain). In the same period, remuneration excluding bonuses fell to 6.1%, compared to expectations of a stable result (6.2%). Employment data showed some weakening of the labor market. Easing wage pressures and cooling labor market will be welcomed by policymakers.
GBP/USD's losses from last week's high have extended a little further today, but the decline in the pair maintains a corrective appearance (bull flag potential), implying gains could resume on a bounce above 1.2815/1.2820 intraday.
Support lies at 1.2755/1.2765.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
