GBP/USD holds 1.41 because the UK labour market continues its recovery. The Nasdaq closed at a fresh all time high, US retail sales due later, FOMC begins.

GBP/USD holds 1.41 because the labour market recovery continues 


The percentage within the 3 months to April ticked lower to 4.7%, down from 4.8%. 


The claimant count declined by 92.6k as people came off furlough and re-entered the manpower . 


Average earnings jumped by 5.6%, up from 4.3%. 


UK PM Boris Johnson delayed the ultimate reopening of the united kingdom economy by 4 weeks. 


BoE Andrew Bailey is thanks to speak at 12:15 GMT 


The US Dollar index is edging a couple of pips lower as investors remain fixed on tomorrow’s Federal Reserve System monetary policy announcement. 


US retail sales are expected to point out -0.8% MoM down from 0% 


A guide to GBP


Where next for GBP/USD? 


After hitting 1.4250 on 31st May, GBP/USD has slipped 150 points. The pair found support within the previous session on its ascending trendline dating back to mid April. 


The pair is holding above 1.41 however the bearish MACD is keeping sellers hopeful. 


Any move lower would wish to interrupt below the ascending line support at 1.4070, also yesterday’s low. removing that technical barrier could see GBP/USD test 1.40, the 50 sma and round number. 


Should the pair maintain levels above last week’s low then a rebound towards 1.42 might be possible. If the June high is taken out then GBP/USD could make a move towards the year so far high of 1.4250. 


 Nasdaq hit fresh record highs, retail sales focused , FOMC begins 


The Nasdaq closed at record highs, boosted by big tech names like Apple, Facebook and Amazon. 


Bond yields also remain depressed amid expectations that inflation are going to be transitory and therefore the Fed won’t be forced to slap on the breaks. 


There is just one show in town in the week and that’s June’s FOMC which kicks off today with the announcement due tomorrow. 


Data wise US retail sales are expected to point out -0.8% after a 0% 


Where next for the Nasdaq? 


The Nasdaq broke above 14070 resistance, the high April 29, to shut at an all time high within the previous session. 


Taking out this level boosts the probabilities of further upside and therefore the index has continued to push higher overnight reaching 14162. 


The RSI is supportive of further upside, whilst it remains out of overbought conditions. 


It would rake a move below 14070 to negate the near term uptrend. A move below 13725 the 50 sma could see the sellers gain traction. 


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