Pound Sterling Price News and Forecast: GBP/USD could test sub-1.3200 levels/200-day SMA

FXStreet Team FXStreet

GBP/USD Forecast: Could test sub-1.3200 levels/200-day SMA; focus shifts to Fed’s Powell

The GBP/USD pair attracts heavy selling during the early part of the European session on Tuesday and drops to mid-1.3200s, or its lowest level since early August, in reaction to the disappointing UK labor market report. Data published by the Office for National Statistics (ONS) showed that the UK ILO Unemployment Rate edged up to 4.8% in the three months to August, compared to 4.7% recorded in the previous month and consensus estimates. Further details revealed that the number of people claiming jobless benefits rose 25.8K in September, against a revised fall of 2.0K in August.

Meanwhile, Average Earnings, including Bonus, increased by 5.0% during the quarter through August, beating expectations and the previous reading of 4.7%. That said, regular pay growth, excluding Bonus, eased to 4.7% during the reported period, down slightly from 4.8% previously and marking the weakest pace since March–May 2022. The data fuels speculations that the Bank of England (BoE) could continue cutting interest rates gradually and weighs heavily on the British Pound (GBP). This, along with renewed US Dollar (USD) buying, is seen exerting pressure on the GBP/USD pair. Read more...

GBP/USD is under pressure after labour data

GBP/USD is diving toward the two-month low of 1.3260 following the release of disappointing UK labor market figures. The unemployment rate unexpectedly rose to 4.8% in the three months to August, up from 4.7% in the previous quarter, while employment levels declined, adding pressure to the British pound.

The pair is nearing a medium-term ascending trendline, which may act as a support level. A potential rebound from this area could shift attention toward the 23.6% Fibonacci retracement level at 1.3370, followed by resistance at the mid-level of the Bollinger Band and the 50-day simple moving average (SMA) in the 1.3435–1.3475 zone. Read more...

Author

FXStreet Team

FXStreet

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD climbs toward 1.1800 on broad USD weakness

EUR/USD gathers bullish momentum and advances toward 1.1800 in the second half of the day on Tuesday. The US Dollar weakens and helps the pair stretch higher after the employment report showed that Nonfarm Payrolls declined by 105,000 in October before rising by 64,000 in November.

GBP/USD climbs to fresh two-month high above 1.3400

GBP/USD gains traction in the American session and trades at its highest level since mid-October above 1.3430. The British Pound benefits from upbeat PMI data, while the US Dollar struggles to find demand following the mixed employment figures and weaker-than-forecast PMI prints, allowing the pair to march north.

Gold recovers above $4,300 as markets react to weak US data

Gold trades in positive above $4,300 after spending the first half of the day under bearish pressure. XAU/USD capitalizes on renewed USD weakness after the jobs report showed that the Unemployment Rate climbed to 4.6% in November and the PMI data revealed a loss of growth momentum in the private sector in December.

US Retail Sales virtually unchanged at $732.6 billion in October

Retail Sales in the United States were virtually unchanged at $732.6 billion in October, the US Census Bureau reported on Tuesday. This print followed the 0.1% increase (revised from 0.3%) recorded in September and came in below the market expectation of +0.1%.

Ukraine-Russia in the spotlight once again

Since the start of the week, gold’s price has moved lower, but has yet to erase the gains made last week. In today’s report we intend to focus on the newest round of peace talks between Russia and Ukraine, whilst noting the release of the US Employment data later on day and end our report with an update in regards to the tensions brewing in Venezuela.

BNB Price Forecast: BNB slips below $855 as bearish on-chain signals and momentum indicators turn negative

BNB, formerly known as Binance Coin, continues to trade down around $855 at the time of writing on Tuesday, after a slight decline the previous day. Bearish sentiment further strengthens as BNB’s on-chain and derivatives data show rising retail activity.