GBP/NOK: Krone Picks Up Support Against the Pound Ahead of Norwegian Labour Data

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The Norwegian krone picked up some support against the British pound during the Asian session after the pair reached an important resistance level on the daily chart. As of 7:00 a.m. London time, the krone traded at 11.8340 against sterling.

The following trading days ahead of the Thanksgiving holiday in the US should be fairly quiet.

On Tuesday, Labour Party leader Jeremy Corbyn unveiled a spending plan for pensioners that included an almost GBP 11 billion package for social care. Johnson’s Conservatives replied that Labour could spend around $200 on Scottish independence referendums and the UK’s relationship with the EU.

Overall, Labour’s plan involves six pounds of new spending for every one pound of spending promised by the Conservatives and includes the nationalizing of the Royal Mail, energy, railways, and water utilities.

Oil prices are unchanged to slightly lower for the day, and investors are awaiting the Norwegian labour force survey and the unemployment rate that is released tomorrow morning. The unemployment rate is expected to hold steady at 3.7% in September.

From a technical standpoint, the pair faced some selling pressure after reaching an intraday high of 11.8652 yesterday – a level that aligns with a strong horizontal and trendline resistance and the 61.8% Fib level on the daily chart.

Oscillators remain bearish with the RSI forming a hidden divergence. The 11.86 zone continues to act as a strong resistance for the pair, the break of which would imply a fresh three-week high and target the upper triangle resistance around the 11.90 level.

To the downside, the pair looks supported by the last week’s low of 11.7235, followed by the November 7 low of 11.6214.


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