GBP/USD bulls poke 1.1700 on Brexit optimism, softer UK Unemployment Rate, US inflation eyed


  • GBP/USD defends two-day upside momentum at a fortnight top.
  • UK Claimant Count Change increased in August but ILO Unemployment Rate dropped for three months to July.
  • EU’s Sefcovic steps forward to ease Brexit woes surrounding NI border.
  • US CPI will be a crucial catalyst ahead of UK inflation.

GBP/USD picks up bids to 1.1700 as the Cable pair buyers cheer upbeat UK jobs report during early Tuesday. Even so, cautious sentiment ahead of the US inflation data seems to restrict immediate upside moves.

The UK’s headline Claimant Count Change rose to 6.3K in August compared to the market consensus of -9.2K and -10.5K prior. Further details suggest that the ILO Unemployment Rate for three months to July dropped to 3.6% versus 3.8% market forecasts.

Also read: UK ILO Unemployment Rate unexpectedly drops to 3.6% in July

In addition to the mostly positive UK job data, the price positive headlines surrounding Brexit also should have favored the GBP/USD prices. That said, the European Union’s (EU) Brexit Chief Maros Sefcovic has said, per the Independent, that he wants to reduce physical customs checks across the Irish Sea to just a few lorries a day in a bid to break the impasse over the Northern Ireland Protocol (NIP).

Also positive could be the likely aggression of the Bank of England (BOE) due to Liz Truss’ elections as the UK Prime Minister (PM), as well as hopes of more stimulus from the British government to defend the economy from the recession woes.

On the other hand, cautious optimism surrounding the US inflation release and expectations of more monetary/fiscal support from China seem to have favored the market’s sentiment and the GBP/USD prices. On the same line could be the updates that Ukraine is gaining success in pushing back the Russian military from some of its areas that seem to have underpinned the market’s cautious optimism, even as the same raised the fears of Russia’s harsh retaliation.

However, the geopolitical tension concerning China and Russia, as well as the likely tough road for UK PM Truss challenges the GBP/USD bulls.

Having witnessed an initial reaction to the UK jobs report, GBP/USD traders may witness the lackluster trading hours ahead of the US Consumer Price Index (CPI) data for August. Market forecasts suggest that the CPI is expected to ease to -0.1% MoM versus 0.0% prior, which in turn could help the Cable pair buyers to keep reins.

Technical analysis

Successful trading beyond the 1.1650-55 support, including the 100-SMA and a one-week-old ascending trend line, joins the bullish MACD signals to favor the bullish bias surrounding the GBP/USD. With this, the Cable pair remains on the way to a horizontal area comprising multiple levels marked since August 22, between 1.1745 and 1.1755.

Additional important levels

Overview
Today last price 1.1686
Today Daily Change 0.0000
Today Daily Change % 0.00%
Today daily open 1.1686
 
Trends
Daily SMA20 1.1713
Daily SMA50 1.1911
Daily SMA100 1.2149
Daily SMA200 1.2739
 
Levels
Previous Daily High 1.171
Previous Daily Low 1.1591
Previous Weekly High 1.1648
Previous Weekly Low 1.1405
Previous Monthly High 1.2294
Previous Monthly Low 1.1599
Daily Fibonacci 38.2% 1.1665
Daily Fibonacci 61.8% 1.1637
Daily Pivot Point S1 1.1615
Daily Pivot Point S2 1.1544
Daily Pivot Point S3 1.1496
Daily Pivot Point R1 1.1734
Daily Pivot Point R2 1.1782
Daily Pivot Point R3 1.1853

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

AUD/USD declines below 0.6700 amid weak Aussie Retail Sales, China’s covid protests

AUD/USD declines below 0.6700 amid weak Aussie Retail Sales, China’s covid protests

AUD/USD is extending its decline below 0.6700, undermined by a resurgent safe-haven demand for the US Dollar amid a risk-off theme at the start of the week. China's covid protests and weak Australian Retail Sales add to the weight on the Aussie. 

AUDUSD News

EUR/USD tumbles toward 1.0300 amid risk aversion

EUR/USD tumbles toward 1.0300 amid risk aversion

EUR/USD is falling hard toward 1.0300 after kicking off the week’s trading with a downside gap, as the risk-off mood underpins the US Dollar’s demand during Monday’s Asian session. The downbeat comments from ECB  policymaker Makhlouf exert bearish pressure on the Euro. 

EUR/USD News

Gold snaps four-day uptrend below $1,750 as covid woes sour sentiment

Gold snaps four-day uptrend below $1,750 as covid woes sour sentiment

Gold price drops for the first time in five days while printing sizeable losses below $1,750 during early Monday. The yellow metal bears the burden of the market’s sour sentiment, amid intensifying Chinese covid woes, ahead of important data due later this week.

Gold News

Binance Coin: Two things need to happen for BNB to hit $450

Binance Coin: Two things need to happen for BNB to hit $450

Binance Coin price could be running out of gas to continue its massive rally. While the last five days have been exciting times for holders, the following days will need to be closely monitored. The threat of a downswing looms for BNB.

Read more

Week Ahead: Decisive week for the Dollar as PCE inflation and NFP reports coming up

Week Ahead: Decisive week for the Dollar as PCE inflation and NFP reports coming up

After the Thanksgiving downtime that generated some further weakness for the greenback, investors will be looking for fresh direction from the barrage of US economic data that will be dominating the agenda in the coming week.

Read more

Forex MAJORS

Cryptocurrencies

Signatures