Forex. Trading forecast and signals for GBP/USD for today, April 21
British currency declined against the US dollar to the price value of 1.3930.
The Office for National Statistics announced that the official UK unemployment rate fell to 4.9% in March, just below the expected reading. At the same time, the change in the number of applications for unemployment benefits showed a slight increase last month. The average weekly wage in the UK increased by 4.4% (4.2% forecast). The latest data shows that the labor market has generally remained stable in recent months. After several months of growth, there was a slight decrease in the number of employees hired in March 2021. The number of vacancies from January to March 2021 decreased by almost 23% compared to the same period last year. The employment rate in the UK is estimated at 75.1%, which is 1.4% lower than a year earlier.
GBP failed to hold its position above the key level of 1.4000 amid a mixed report on the labor market. But the outlook for GBP remains strong thanks to expectations of strong economic performance as the country reopened after three months of quarantine. The high vaccination rate in the UK also supports the recent rise in Pound. From a technical point of view, overbought on the hourly charts was the only factor that contributed to the pair's pullback from the 1.4000 mark. Nevertheless, the technical indicators on the daily chart have just started to gain momentum and support the prospects for further growth. Consequently, any subsequent pullback can still be seen as a good opportunity to open buy positions.
Trading Signals for GBP/USD
The forecast assumes the growth of GBP/USD to the levels of 1.3950, 1.3970 and 1.4000.