GBP/USD Forecast: Market participants waiting for UK employment figures

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3837

The UK will publish employment-related data on Tuesday, focus on unemployment.
Irish companies working their way around the Brexit protocol.
GBP/USD edged lower amid renewed demand for the safe-haven dollar.

The GBP/USD pair bottomed for the day at 1.3827, recovering some ground in the American afternoon to end the day at around 1.3854. The pair depended solely on the dollar’s demand, or the lack of it, ignoring news coming from the United Kingdom. Nevertheless, news showed a sharp increase in the value of goods imported from Northern Ireland to the Republic, up by 77%, while the value of exports rose 43%. Companies on both sides of Ireland are making their way to avoid difficulties resulting from the Brexit protocol.

On Tuesday, the UK will release employment-related data. The ILO unemployment rate for the three months to June is foreseen steady at 4.8%, although the focus will be on the September Claimant Count Change, the number of people claiming from jobless benefits, which printed at -114.8K in the previous month. Finally, Average Earnings are foreseen up in the three months to June.

GBP/USD short-term technical outlook

The GBP/USD pair is held below a daily descendant trend line coming from July’s high at 1.3983 and remains neutral in the near-term. The 4-hour chart shows that it is trading mid-way between directionless 100 and 200 SMAs while hovering around an also flat 20 SMA. Additionally, technical indicators hover around their midlines without directional strength. The mentioned trend line is currently at 1.3880, providing immediate resistance.

Support levels: 1.3790 1.3755 1.3705

Resistance levels: 1.3880 1.3935 1.3980

View Live Chart for the GBP/USD

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

EUR/USD onsolidates around mid-1.1800s as traders keenly await FOMC Minutes

The EUR/USD pair struggles to capitalize on the previous day's goodish rebound from the 1.1800 neighborhood, or a one-and-a-half-week low, and consolidates in a narrow band during the Asian session on Wednesday. Spot prices currently trade just below mid-1.1800s, nearly unchanged for the day.

GBP/USD seems vulnerable near mid-1.3500s; UK CPI/FOMC Minutes awaited

The GBP/USD pair struggles to capitalize on the previous day's late rebound from an over one-week low – levels below the 1.3500 psychological mark – and trades with a negative bias for the third consecutive day on Wednesday. The downside, however, remains cushioned as investors seem reluctant to place aggressive directional bets ahead of the release of the latest UK consumer inflation figures and FOMC Minutes.

Gold regains positive traction after Tuesday's over 2% slump as traders await FOMC Minutes

Gold gains some positive traction during the Asian session on Wednesday and recovers a part of the previous day's heavy losses more than 2%, to the $4,843-4,842 region or a nearly two-week low. The intraday move higher could be attributed to repositioning trade ahead of the release of the FOMC Minutes.

Top Crypto Gainers: Jito drops, Morpho holds steady, Convex Finance climbs

Decentralized Finance tokens, including Jito, Morpho, and Convex Finance, rank among the top-performing crypto assets over the last 24 hours. Jito dips on Wednesday after rallying 22% the previous day on the launch of a new mainnet node.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.