- GBP/USD is seeing a slight rally ahead of Tuesday’s data reading.
- A quiet Monday to give way to an economic agenda full of data.
- Notable data: UK wages and labor, US CPI
GBP/USD hit Monday’s highs near 1.2280 as markets position themselves ahead of Tuesday’s data, with UK wages and jobs data hitting markets early in the London session ahead of that the US Consumer Price Index (CPI) inflation figures will fall on investors at midday.
In the UK, average earnings (excluding premiums) are expected to moderate for the 3rd quarter, with a downward forecast of 7.8% to 7.7%; For its part, premium earnings will accelerate downward, with a downward forecast of 8.1% to 7.4%.
Investors are hoping for an improvement (or at least no decline) in the UK Employment and Claims figures. In the UK, the employment outlook last contracted in September, with a drop of 82,000 people in employment, while claimants for unemployment benefits rose by almost 20,500 people.
US CPI inflation is generally expected to remain stable at the annualized level, with slight declines in the month-on-month figures. The US headline CPI for the year through October is expected to decline from 3.7% to 3.3%.
Monthly CPI inflation is expected to be a moderate 0.1% in October, down from 0.4% in September.
GBP/USD Technical Outlook
The British pound’s gentle bounce on Monday follows last Friday’s rebound from a weekly low near 1.2190, breaking through an intraday descending trend line from last week’s high near 1.2425.
The pair is approaching the 200 hourly simple moving average (SMA) again, which currently stands at 1.2260.
The pair is establishing a short-term technical support zone near 1.2240, and as long as the downside remains limited, the upside will have a free way to crash against the technical resistance barrier at the 1.2300 zone.
GBP/USD Hourly Chart
GBP/USD Technical Levels
|Latest price today||1.2267|
|Today I change daily||0.0041|
|Today’s daily variation||0.34|
|Today’s daily opening||1.2226|
|Previous daily high||1.2238|
|Previous daily low||1.2187|
|Previous weekly high||1.2429|
|Previous weekly low||1.2187|
|Previous Monthly High||1.2337|
|Previous monthly low||1.2037|
|Daily Fibonacci 38.2||1.2219|
|Fibonacci 61.8% daily||1.2207|
|Daily Pivot Point S1||1.2196|
|Daily Pivot Point S2||1.2166|
|Daily Pivot Point S3||1.2145|
|Daily Pivot Point R1||1.2247|
|Daily Pivot Point R2||1.2268|
|Daily Pivot Point R3||1.2298|
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.