- GBP/USD pulled back towards the 1.2670 zone, below the 20-day SMA.
- Core CPI for July rose to 3.3%, matching expectations.
- Focus is on Friday’s NFP, which is expected to have slowed to 170,000.
On Thursday, the pair GBP/USD lost ground as the dollar traded strongly against most of its rivals following the release of Core Personal Consumption Expenditure (PCE) figures for July. Pound losses are limited by Bank of England tightening expectations, which remain elevated.
Core PCE rose in July and jobless claims slowed at the end of August
Core CPI for July stood at 3.3%, up from 3% previously and matching consensus. In addition, in the US it was reported that jobless claims for the week ending August 25 slowed to 228,000, compared to 235,000 expected and 232,000 previously, suggesting some resistance from the labor market after the US reported weak jobs numbers on Tuesday.
All eyes are now on the US August Non-Farm Payrolls (NFP) report to be released on Friday, which is likely to cause volatility in the markets as it is the ultimate gauge of the health of the American job market. As the Federal Reserve (Fed) anticipates a cooling off in the job market, its result will help investors place bets on upcoming decisions.
On the GBP side, no relevant data was published, but its losses are limited by expectations of a tightening of the Bank of England (BoE), and the markets continue betting on a terminal rate between 5.75%-6% for this cycle. .
GBP/USD Levels to Watch
On the daily chart, GBP/USD maintains a neutral technical outlook as indicators send mixed signals. The Relative Strength Index (RSI) is sloping negatively into bullish territory, hinting at a possible momentum shift, while the Moving Average Convergence (MACD) shows shorter red bars. Furthermore, the pair is below the 20-day SMA but above the 100-day and 200-day SMAs, indicating favorable positioning for bulls in the bigger picture.
Support levels: 1.2645 (100-day SMA), 1.2600, 1.2550.
Resistance levels: 1.2700 (20-day SMA), 1.2730, 1.2750.
GBP/USD Daily Chart
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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.
