GBP/USD is under pressure after labour data

GBPUSD moves toward 2-month trough.
RSI and MACD tick south.

Melina Deltas, CFTe XM

GBPUSD is diving toward the two-month low of 1.3260 following the release of disappointing UK labor market figures. The unemployment rate unexpectedly rose to 4.8% in the three months to August, up from 4.7% in the previous quarter, while employment levels declined, adding pressure to the British pound.

The pair is nearing a medium-term ascending trendline, which may act as a support level. A potential rebound from this area could shift attention toward the 23.6% Fibonacci retracement level at 1.3370, followed by resistance at the mid-level of the Bollinger Band and the 50-day simple moving average (SMA) in the 1.3435–1.3475 zone.

However, a decisive break below the trendline would expose the 200-day SMA at 1.3190 and the 38.2% Fibonacci retracement of the uptrend from 1.2100 to 1.3788, located at 1.3140. Such a move would likely neutralize the medium-term bullish outlook.

From a momentum perspective, the RSI is trending below the neutral 50 level, indicating weakening buying interest, while the MACD continues to extend its negative trajectory below both its signal and zero lines.

All in all, GBPUSD is at a critical juncture, with technical indicators pointing to increased downside risks. A sustained move below 1.3260 could open the way for a neutral phase.

Author

Melina Deltas, CFTe

Melina joined Trading Point in December 2017 as a Market Analyst. She can clearly communicate market action, particularly technical and chart pattern setups.

GBP/USD edges lower due to safe-haven demand

GBP/USD inches lower after opening at a bullish gap, trading around 1.3200 during the Asian hours on Monday. The pair loses ground as the Pound Sterling declines against the US Dollar amid emerging safe-haven demand, which could be attributed to the United States-Iran talks uncertainty.

EUR/USD remains stronger despite uncertainty surrounding US-Iran talks

EUR/USD pair maintains its upward momentum for a third consecutive session, trading near 1.1390 during Monday's Asian hours. Despite this positive streak, the Euro’s gains could face headwinds if geopolitical uncertainty sparks a flight to safety, boosting the US Dollar.

Gold looks south amid US-Iran uncertainty and Death Cross in play

Gold snaps a two-day rebound from seven-month lows, as sellers return in the Nonfarm Payrolls week ahead. The US Dollar holds the previous bounce amid renewed Mideast tensions, hawkish Fed bets. Gold stays a ‘sell on rise’ trade amid bearish RSI and Death Cross on the daily chart.

Bitcoin stuck near $60,000 – Zcash, Jupiter extend losses

The broader cryptocurrency market continues to trade under pressure, with Bitcoin struggling for direction near $60,000 on Monday. Retail sentiment in crypto leans bearish, with CoinMarketCap’s Fear and Greed Index at 15 on Monday, maintaining a sideways trend deep in the “Extreme Fear” zone.

Middle East War updates: US, Iran appear to be returning to talks to end the war

Here’s a brief recap of the key developments in the Middle East war that occurred over the weekend, which are expected to have a significant impact on markets in the upcoming week.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.