The traders began to accumulate the next two Bank Of England interest rate rallies after the UK's exclusive UK labor market report. Currently, the probability of raising the next meeting has reached more than 88%. The possibility of another raise during the June 21 meeting also jumped to over 50%. The UK Labor report is extremely positive and shows the strong growth of the British economy despite the concerns Brexit has created. Average hourly wage growth jumped to 2.8% from the expected 2.6%. New jobs increased twice as expected: 168K vs 84K expected, and unemployment fell to 4.3% from 4.4% expected.
GBP marks an increase, with the long-term trend remaining. The price forms a flag formation that has been activated and tested in recent days. We have a breakthrough on a horizontal level of resistance, which was the last beacon defense line. Fibonacci 23.6% managed to keep up the pressure. From here the road to the bulls seems unobstructed. After the flag breaks, the price tests its upper diagonal, and then records a strong upward pulse, which in turn breaks the horizontal resistance. From the point of view of the indicators, Sequential starts a second phase of the ascending countdown with 2 on the top - Long - and remains more likely. Entry from the current levels will be capped at SL at 1.38000 levels.
Alternative Scenario: If the price goes back below the main diagonal and stays there in several successive bars, the positive scenario will break and are more likely to see a GBP/USD decline.
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