GBP/USD holds positive ground above 1.2150 amid the softer USD, investors await UK labor data, US Retail Sales

GBP/USD holds positive ground near 1.2160 amid the USD weakness.
Bank of England (BoE) Governor Andrew Bailey said rates will likely remain around the current 5.25% to return inflation to 2%.
Investors have priced in a potential rate rise by the Federal Reserve (Fed) by the end of the year.
Market players will monitor the UK employment data, US Retail Sales due on Tuesday.

Lallalit Srijandorn FXStreet

The GBP/USD pair gains traction above the mid-1.2100s during the Asian session on Monday. The softer US Dollar (USD) lends some support to the pair. The risk sentiment dominate the market ahead of the key UK employment data and US Retail Sales on Tuesday. The major pair currently trades around 1.2160, up 0.15% for the day.

The latest data on Monday showed that the UK’s Rightmove House Price Index rose by 0.5% MoM in October versus 0.4% prior. On an annual basis, the figure dropped by 0.8% from the 0.4% decline in the previous reading.

During his remarks at the International Monetary Fund meetings in Morocco on the weekend, Bank of England (BoE) Governor Andrew Bailey stated that rising borrowing costs were affecting the housing market and employment. He indicated that interest rates will likely remain around the current 5.25%, given that restrictive policy is required to return inflation to 2%.

Across the pond, investors anticipate a possible rate rise by the Federal Reserve (Fed) by the end of the year due to the higher inflation expectation and the upbeat inflation data last week. The University of Michigan (UoM) one-year Inflation expectations climbed from 3.2% to 3.8%, and five-year inflation estimates jumped from 2.8% to 3%. Meanwhile, the US Michigan Consumer Sentiment Index data on Friday dropped to 63.0 versus 68.1 prior, missing the expectation of 67.4.

The US Consumer Price Index (CPI) annually and monthly for September came in at 3.7% and 0.4%, respectively. However, the dovish comments from Fed officials might warrant bull traders on the aggressive bullish bets.

Market players will keep an eye on the UK employment data on Tuesday. The Employment Change is expected to decline by 195K in August and ILO Unemployment Rate (3M) is expected to remain at 4.3%. Also, the US Retail Sales will be released, which is expected to rise 0.2%. These figures could give a clear direction to the GBP/USD pair.

GBP/USD

Overview
Today last price	1.2161
Today Daily Change	0.0019
Today Daily Change %	0.16
Today daily open	1.2142

Trends
Daily SMA20	1.2222
Daily SMA50	1.2464
Daily SMA100	1.26
Daily SMA200	1.2444

Levels
Previous Daily High	1.2226
Previous Daily Low	1.2123
Previous Weekly High	1.2337
Previous Weekly Low	1.2123
Previous Monthly High	1.2713
Previous Monthly Low	1.2111
Daily Fibonacci 38.2%	1.2162
Daily Fibonacci 61.8%	1.2186
Daily Pivot Point S1	1.2102
Daily Pivot Point S2	1.2061
Daily Pivot Point S3	1.1999
Daily Pivot Point R1	1.2204
Daily Pivot Point R2	1.2266
Daily Pivot Point R3	1.2307

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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