GBP/USD outlook: Cable cracks pivotal 1.2300 resistance zone on strong UK labor data
GBPUSD cracked 1.2300 barrier in early European trading on Monday, boosted by better than expected US labor data (Sep wages rose above expectations and employment was significantly up in three months to Sep) which added to hawkish stance on BoE rate outlook.
Cable rises for the third straight day after a bear trap on Friday, with penetration and close within thick daily cloud, contributing to fresh bullish signals, though bulls face headwinds at pivotal 1.2300 resistance zone (round-figure / Fibo 38.2% of 1.2737/1.2037 bear-leg / Nov 11 high). Read more...
GBP/USD Forecast: Pound Sterling awaits a sustained move above 1.2300
GBP/USD is holding a three-day recovery in the European session on Tuesday after finding a positive impetus from the mixed UK employment data. The UK ILO Unemployment Rate held steady at 4.2% in the quarter to September. Additional details showed that the number of people claiming jobless benefits climbed by 17.8K in September when compared to the previous jump of 20.4K. Average Earnings excluding Bonus rose 7.7% 3M YoY in September, as against a 7.8% increase registered in August. Markets had expected an increase of 7.7%.
However, the further upside in the GBP/USD pair appears capped, as Pound Sterling traders turn cautious and refrain from placing fresh bets on the pair ahead of the all-important US Consumer Price Index (CPI) data due later in the day. Read more...
GBP/USD faces pressure near 1.2270 ahead of UK employment data
GBP/USD trades lower around 1.2270 during the Asian session on Tuesday, snapping a two-day winning streak. The GBP/USD pair faces minor pressure ahead of the employment data from the United Kingdom (UK) due to be released later in the day.
Bank of England (BoE) policymakers Huw Pill and Katherine Mann expressed concerns about the potential cumulative effect of higher interest rates in the ongoing battle against persistent inflation. Fearing a deepening recession, they are expected to endorse earlier rate cuts. Read more...
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