GBP/USD clings to gains near daily peak after mixed UK jobs data, focus remains on US CPI

GBP/USD attracts some buyers for the second straight day and draws support from a softer USD.
A fresh leg down in the US bond yields, along with a positive risk tone, undermines the Greenback.
Spot prices react little to the UK jobs data as the focus remains glued to the crucial US CPI report.

Haresh Menghani FXStreet

The GBP/USD pair gains some positive traction for the second straight day on Tuesday, albeit struggles to capitalize on the move and remains below the overnight swing high. Spot prices move little following the release of the UK monthly jobs data and hold steady around the 1.2580-1.2585 region, up over 0.25% for the day.

The UK Office for National Statistics (ONS) reported that the number of people claiming unemployment-related benefits rose to 16K in November as compared to the 20.3K anticipated. Adding to this, the previous month's reading was also revised down to 8.9K from the 17.8K reported originally. This, however, was overshadowed by the fact that Average Earning decelerated more than expected during the three months to October. This comes amid rising bets that the Bank of England's (BoE) rate-hiking cycle could be reversed in 2024 and turn out to be a key factor acting as a headwind for the British Pound (GBP).

The US Dollar (USD), on the other hand, ticks lower in the wake of a fresh leg down in the US Treasury bond yields and bets that the Federal Reserve (Fed) will not hike interest rates again. Apart from this, a generally positive tone around the equity markets is seen undermining the Greenback's relative safe-haven status amid some repositioning trade ahead of the latest US consumer inflation figures, due for release later today. This, in turn, remains supportive of the bid tone surrounding the GBP/USD pair, though traders prefer to wait on the sidelines ahead of the key central bank event risks.

The Fed is scheduled to announce its policy is scheduled to announce its policy decision at the end of a two-day meeting on Wednesday. This will be followed by the BoE meeting on Thursday, which will play a key role in influencing the GBP and provide some meaningful impetus to the GBP/USD pair. In the meantime, the aforementioned fundamental warrants some caution before positioning for an extension of the recent bounce from the 1.2500 psychological mark, or the monthly low touched last Friday.

Technical levels to watch

GBP/USD

Overview
Today last price	1.2579
Today Daily Change	0.0022
Today Daily Change %	0.18
Today daily open	1.2557

Trends
Daily SMA20	1.2564
Daily SMA50	1.2348
Daily SMA100	1.2461
Daily SMA200	1.2488

Levels
Previous Daily High	1.2591
Previous Daily Low	1.2533
Previous Weekly High	1.2724
Previous Weekly Low	1.2502
Previous Monthly High	1.2733
Previous Monthly Low	1.2096
Daily Fibonacci 38.2%	1.2569
Daily Fibonacci 61.8%	1.2555
Daily Pivot Point S1	1.253
Daily Pivot Point S2	1.2503
Daily Pivot Point S3	1.2472
Daily Pivot Point R1	1.2587
Daily Pivot Point R2	1.2618
Daily Pivot Point R3	1.2645

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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