Having staged a solid more-than 100-pips recovery yesterday, the GBP bulls take a breather in the Asian session so far, while investors await the UK jobs data for further impetus.
GBP/USD: UK jobs in focus
A renewed hint of risk-aversion appears to grip the markets after the Chinese dataflow turned out mixed, thereby, weighing on the demand for higher-yielding currencies such as the GBP.
The major stalled its recovery mode above 1.23 handle and failed several attempts to survive above the last, as markets prefer to lock-in gains ahead of the UK employment data, which is expected to show a rise in the claimant count.
Overall, the sentiment may remain buoyed behind the GBP/USD pair, on the back of ongoing weakness in the US dollar against its main competitors, in response to a recent series of disappointing US fundamentals. Apart from the UK jobs report, the US calendar will hold the US housing data later today.
GBP/USD Levels to consider
The pair finds immediate resistances placed at 1.2325 (daily high), 1.2377 (Oct 11 high) and 1.2400 (round number). While supports are lined up at 1.2252 (10-DMA) and 1.2227 (5-DMA) and below that at 1.2200 (daily S1).
- R3 1.2508
- R2 1.2417
- R1 1.2358
- PP 1.2267
- S1 1.2208
- S2 1.2117
- S3 1.2058