Key Points
- British Pound surged higher today against the US Dollar, and currently waiting for the UK voting results.
- The outcome of Brexit may impact the GBPUSD pair to a great extent, so we should trade carefully.
- In the US, the Initial Jobless Claims released by the US Department of Labor posted a decline from 277K to 259K.
- The Continuing Jobless Claims also declined from 2.162M to 2.142M, which was better than the forecast.
Technical Analysis
The British Pound enjoyed a nasty ride against the US Dollar, as most polls were giving edge to BreRemain. The GBPUSD pair surged and closed above the 50 and 100 hourly simple moving average and traded as high as 1.4948.
There are a couple of important trend lines, acting as a resistance and support for the GBPUSD pair. We can keep an eye on the trend lines for the next move.
On the upside, if all goes well, a test of the 1.50 handle is possible in the near term.
US Initial Jobless Claims
In the US today, the Initial Jobless Claims, which is a measure of the number of people filing first-time claims for state unemployment insurance was released by the US Department of Labor. The market was expecting a decrease from 277K to 270K. However, the result was better, as the claims dropped to 259K.
The report stated that “In the week ending June 18, the advance figure for seasonally adjusted initial claims was 259,000, a decrease of 18,000 from the previous week’s unrevised level of 277,000. The 4-week moving average was 267,000, a decrease of 2,250 from the previous week’s unrevised average of 269,250“.
Overall, the report was positive, and helping the greenback to gain bids against most major currencies, including the GBP.
