• GBP/USD is displaying back-and-forth moves around 1.1700 as investors await US NFP.
  • The US NFP is seen lower at 290k vs. 528k reported earlier.
  • A minute improvement in earnings data is not lucrative for US households.

The GBP/USD pair has turned sideways after facing barricades around 1.1750 on Monday. The cable is oscillating in a narrow range of 1.1700-1.1710 in the early Tokyo session as investors are arranging their trades ahead of the US Nonfarm Payrolls (NFP), which will release later this week. On a broader note, the asset has displayed a pullback move after remaining in a negative trajectory. The asset printed a fresh two-year low at 1.1648 and a pullback move lacks conviction as the context is still bearish.

Federal Reserve (Fed)’s restrictive stance over guidance on interest rates dictated at Jackson Hole Economic Symposium is still haunting the risk-perceived currencies. Fed chair Jerome Powell is clear with his focus on bringing price stability first despite sacrificing growth prospects and unemployment. Although, it is necessary to tackle the inflation monster first as the price rise index has reached a whopping figure of 8.5% and is impacting the savings and consumption pattern of the households.

As per the preliminary estimates, the US Nonfarm Payrolls (NFP) is seen at 290k, lower than the prior release of 528k. Also, the Unemployment Rate is expected to remain stable at 3.5%. The economic data which could impact the greenback is the Average Hourly Earnings, which is likely to shift higher by 10 basis points (bps) at 5.3%. As price pressures are advancing dramatically, earnings have remained subdued. Therefore, households are facing headwinds amid higher payouts for inflation-adjusted goods and services.

On the UK front, investors are gearing up ahead of the elections season. The UK economy is going through a rough phase of political instability after the resignation of UK Prime Minister Boris Johnson. The UK markets will still remain in turmoil as energy crisis are crossing rooftops and may impact the households’ consumption further.

GBP/USD

Overview
Today last price 1.1705
Today Daily Change -0.0034
Today Daily Change % -0.29
Today daily open 1.1739
 
Trends
Daily SMA20 1.2022
Daily SMA50 1.2049
Daily SMA100 1.2305
Daily SMA200 1.2835
 
Levels
Previous Daily High 1.19
Previous Daily Low 1.1733
Previous Weekly High 1.19
Previous Weekly Low 1.1717
Previous Monthly High 1.2246
Previous Monthly Low 1.176
Daily Fibonacci 38.2% 1.1797
Daily Fibonacci 61.8% 1.1837
Daily Pivot Point S1 1.1682
Daily Pivot Point S2 1.1624
Daily Pivot Point S3 1.1515
Daily Pivot Point R1 1.1849
Daily Pivot Point R2 1.1958
Daily Pivot Point R3 1.2016

 

 

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