GBP/USD fails to resist above 1.2300 once again

Dhwani Mehta FXStreet

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).

1 Week
1 Month
1 Quarter

1 Week

Avg Forecast 1.2164

14% Bullish
14% Bearish
71% Sideways

Bias Sideways

1 Month

Avg Forecast 1.2438

54% Bullish
23% Bearish
23% Sideways

Bias Bullish

1 Quarter

Avg Forecast 1.2351

53% Bullish
20% Bearish
27% Sideways

Bias Bullish

1. R3 1.2508
2. R2 1.2417
3. R1 1.2358
PP 1.2267
1. S1 1.2208
2. S2 1.2117
3. S3 1.2058

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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