Axiory Global Research Team
Axiory Global Ltd.
The pound was relatively calm on Tuesday and the GBPUSD pair was down a bit on the day, hovering at around 1.2850 during the midday session.
The so-called cable failed to move after the latest labor market figures and remained weaker, although losses were not dramatic.
The latest report showed the UK unemployment rate improved to 3.8% from 3.9% previously, while average hourly earnings ticked lower, which was below market' estimates. Moreover, claimant count change for October rose notably to 33,000, from 13,500 previously. As already mentioned, the pound failed to react in a volatile way and remained lower on the day.
Later in the session, President Donald Trump will speak on U.S. economic and trade policy in a lunchtime address in New York, against a backdrop of heightened expectations of a trade truce with China.
His speech will most likely influence the markets, thus, the greenback might be affected on the GBPUSD pair.
Technically speaking, the first notable intraday support seems to be at around 1.2800 and while the pair remains above this level, the medium-term outlook still seems bullish, with dips probably bought. Another level to watch on the downside could be at around 1.2770.
Alternatively, the first resistance is spotted near 1.2850 and if broken to the upside, further strength toward the 1.29 zone might appear, with the short-term outlook turning bullish in this case.
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