The GBP/USD has continued to decline on Thursday. By the middle of Thursday's London trading session the rate had fallen below the 1.2820 level.
From a technical analysis theoretical perspective the rate was expected to decline down to the 1.2720 level, as the closest technical support level was located there.
The British Pound traded sideways against the US Dollar, following the UK Employment data set release on Tuesday at 08:30 GMT. The GBP/USD exchange currency rate lost 6 pips or 0.05% right after the release. The British Pound continued trading at the 1.2945 level against the Greenback.
Office for National Statistics released the UK Average Earnings Index data, which came out worse-than-expected of 3.2% compared with forecast 3.4%. Note, that the UK Unemployment Rate was released at the same time.
The UK labour market maintains its stability with a record number of people in work. The unemployment fell to 3.8%, the lowest level since the end of 1974.
No more data this week
All of the notable data sets of the week have been published. You can watch all of the data covers on the Dukascopy Webinars YouTube channel.GBP/USD short-term review
On Wednesday, the GBP/USD exchange rate tumbled to the support level—the weekly S2 at the 1.2843 mark.Given that the rate is still pressured by the 55-hour moving average, currently located at 1.2896, it is likely, that bears could prevail in the market in the short run. A possible downside target is the psychological level at 1.2800.
However, if the given channel holds, a reversal north could occur in the nearest future, and the currency pair could try to surpass the given moving average.
Hourly Chart
On the daily candle chart, the GBP/USD has reached the lower trend line of the dominant descending channel near 1.2800. The support of this pattern is slowing down the decline.
If the trend line is broken, only then a fast decline down to 1.2720 should occur.
Daily chart
Meanwhile, trader set up pending orders in the 100-pip range were bullish, as 58% of orders were set to buy.