GBP/USD analysis: Pound under pressure ahead of UK employment data
|GBP/USD Current price: 1.2750
- UK employment data expected to show that healthy growth persisted.
- GBP/USD confined to yearly lows, Pound undermined by fears of a no-deal Brexit.
The GBP/USD pair traded at the lower end of Friday's range ending this Monday lower, not far from the yearly low set last week at 1.2722. The Pound had little life of its own, ahead of multiple key UK releases to be out the next couple of days, and starting this Tuesday with the latest employment figures. The ILO unemployment rate for the three months to June is expected to remain steady at 4.2%, while the number of unemployed people seeking unemployment benefits is expected to have increased by 3.8K in July. The number of people in jobs in the UK reached a record high of 32.4 million people working according to the report for the three months to May, with the employment rate up to 75.7%. Positive figures are unlikely to offset the negative sentiment toward the Pound on increased fears of a no-deal Brexit but could give the GBP/USD a temporal boost. In the meantime, the dollar remains strong against its high-yielding rivals, and the pair looking bearish short-term, as in the 4 hours chart the price remains well below a firmly bearish 20 SMA, while technical indicators remain within negative levels, with the Momentum flat amid the limited intraday range and the RSI resuming its decline after correcting extreme oversold readings.
Support levels: 1.2720 1.2680 1.2645
Resistance levels: 1.2795 1.2830 1.2865
View Live Chart for the GBP/USD
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