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GBPUSD : Trimming Some of its Gains

GBPUSD is currently trading at four and half year highs after upbeat UK employment data yesterday fueled expectations among investors that Bank of England might raise interest rates. After a significant surge the pair was following an upward sloping channel trend from which it tried to breakout the support trend line of the channel after the US unemployment claims data came out.

 The Department of Labor said that the initial claims increased by 2000 to 304K in the week ending April 12, the economists were expecting the reading to increase to 316K. The 4 week moving average which is considered as the better measure of labor trends decreased by 4750. This is the lowest level for this average since October 6, 2007.

The pair might continue to decline in the hourly chart and find support from the 50 day SMA or at 1.6785 which was earlier a support level for the pair.