GBP/USD Price Analysis: Poised to challenge the 1.2000 mark

Concerns about future Federal Reserve actions weigh on the market mood.
S&P Global will release the final estimates of the September PMIs on Wednesday.
GBP/USD meets sellers at around 1.2100 as demand for the USD prevails.

FXStreet Team FXStreet

GBP/USD fell to 1.2051, a seven-month low Tuesday as speculative interest rushed into the safe-haven US Dollar. The American currency rallied on renewed speculation the United States (US) Federal Reserve (Fed) will maintain its aggressive posture on monetary policy, as inflation remains “too high,” according to different officials, while the labor market remains tight.

On Tuesday, the Bureau of Labor Statistics (BLS) reported that the number of job openings on the last business day of August stood at 9.6 million, much higher than the 8.8 million anticipated. The headline spurred risk aversion, and Wall Street nose-dived as government bond yields soared, reflecting investors’ concerns. Additionally, the US reported that IBD/TIPP Economic Optimism plunged to 36.6 in October from 43.2 in the previous month.

Market players will keep an eye on the September S&P Global Services and Composite PMIs, which will be out on Wednesday. The UK Services PMI is expected to be confirmed at 46.8, while the Composite index is foreseen at 47.2. Across the pond, the US will publish the September ADP Employment Change, predicted at 1.53K, and the official ISM Services PMI, anticipated at 53.6 in September.

GBP/USD technical outlook

The GBP/USD pair trades around 1.2080 mid-American afternoon, meeting sellers at around the 1.2100 threshold. The 1.2000 threshold is the next potential bearish target and is a strong psychological barrier. Significant stop loss should accumulate below the figure, and if those get triggered, the slide could accelerate towards the 1.1900 figure.

GBP/USD

Overview
Today last price	1.208
Today Daily Change	-0.0007
Today Daily Change %	-0.06
Today daily open	1.2087

Trends
Daily SMA20	1.2347
Daily SMA50	1.2574
Daily SMA100	1.2619
Daily SMA200	1.2436

Levels
Previous Daily High	1.222
Previous Daily Low	1.2086
Previous Weekly High	1.2272
Previous Weekly Low	1.2111
Previous Monthly High	1.2713
Previous Monthly Low	1.2111
Daily Fibonacci 38.2%	1.2137
Daily Fibonacci 61.8%	1.2169
Daily Pivot Point S1	1.2042
Daily Pivot Point S2	1.1998
Daily Pivot Point S3	1.1909
Daily Pivot Point R1	1.2176
Daily Pivot Point R2	1.2265
Daily Pivot Point R3	1.2309

Author

FXStreet Team

FXStreet

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