GBP/USD holds above the 1.2800 mark, eyes on UK labour market, US CPI data

GBP/USD trades with mild negative bias near 1.2814 in Tuesday’s early Asian session.
BoE’s Mann said UK has a long way to go for inflation pressures to be consistent with the 2% target.
The cautious mood ahead of key events might lift the safe-haven flow, and benefit the USD.
The UK labour market data and US CPI inflation report will be closely watched events on Tuesday.

Lallalit Srijandorn FXStreet

The GBP/USD pair remains on the defensive above the 1.2800 support during the early Asian trading hours on Tuesday. The lower bets on rate cut expectations from the Bank of England (BoE) weigh on the Pound Sterling (GBP). Investors await the UK labour market data and US CPI inflation data on Tuesday for fresh impetus. GBP/USD currently trades near 1.2814, unchanged for the day.

The BoE policymaker Catherine Mann said on Monday that the UK has a long way to go for inflation pressures to be consistent with the central bank's 2% target. According to UBS Global Research on Monday, the BoE is anticipated to begin lowering interest rates, with a 25 basis point (bps) cut in August, compared to its prior expectation of a cut in May.

On the other hand, a cautious mood in the market ahead of the key events from both the UK and US might provide some support to safe-haven assets like the US Dollar (USD). The US February Consumer Price Index (CPI) figure is estimated to remain steady at 3.1% YoY, and the Core CPI is projected to ease from 3.9% to 3.7% in February. A stronger-than-expected CPI report would further dampen hopes of a rate cut by the Fed over the near term. This, in turn, might boost the Greenback and create a headwind for the GBP/USD pair.

Looking ahead, market players will keep an eye on the UK labor market data, including Employment Change, Claimant Count Change, ILO Unemployment Rate, and Average Earnings. On the US docket, the CPI inflation data for February will be released later on Tuesday. These events could trigger the volatility in the market and give a clear direction to the GBP/USD pair.

GBP/USD

Overview
Today last price	1.2815
Today Daily Change	-0.0036
Today Daily Change %	-0.28
Today daily open	1.2851

Trends
Daily SMA20	1.2663
Daily SMA50	1.2676
Daily SMA100	1.2583
Daily SMA200	1.2585

Levels
Previous Daily High	1.2894
Previous Daily Low	1.2801
Previous Weekly High	1.2894
Previous Weekly Low	1.2652
Previous Monthly High	1.2773
Previous Monthly Low	1.2518
Daily Fibonacci 38.2%	1.2858
Daily Fibonacci 61.8%	1.2837
Daily Pivot Point S1	1.2803
Daily Pivot Point S2	1.2756
Daily Pivot Point S3	1.2711
Daily Pivot Point R1	1.2896
Daily Pivot Point R2	1.2941
Daily Pivot Point R3	1.2988

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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