GBP/USD challenging lows near 1.2270 ahead of data

The Sterling is surrendering part of yesterday’s strong gains and is now dragging GBP/USD to test the lower bound of the range in the 1.2275/70 band.

GBP/USD looks to jobs report

After bottoming out near 1.2180 on Tuesday, the pair managed to pick up pace and advance to as high as the vicinity of 1.2330, although the upside momentum run out of legs soon afterwards.

The softer tone around the greenback during the first half of the week plus fresh demand for GBP have pushed spot higher, albeit it remains vulnerable to ‘Brexit’ headlines and implications for UK fundamentals.

Ahead in the session UK’s labour market report is expected to show the Claimant Count Change at 3.0K during September, while the ILO Unemployment rate is seen steady at 4.9%.

Recall that inflation figures in the UK have surprised markets to the upside during last month, lending extra support to the pair and collaborating with the recent upside.

GBP/USD levels to consider

As of writing the pair is losing 0.15% at 1.2279 and a break above 1.2327 (high Oct.18) would aim for 1.2377 (high Oct.11) and finally 1.2614 (20-day sma). On the flip side, the immediate support lines up at 1.2086 (low Oct.11) ahead of 1.1450 (low post-‘flash crash’ Oct.7).

 

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 securities. 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 Forex 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.