As Tuesday approaches, GBP traders eagerly await the UK labor data release, fueled by the Bank of England's recent dovish shift amid economic concerns. Rising living costs, driven by higher interest rates impacting mortgages, raise central bank caution. Notably, economists forecast negative growth in employment change (-185k vs. -66k) and a higher unemployment rate (4.3% vs. 4.2%). A slowdown in UK claimant change (17.1K vs. 29K) is expected, along with steady wage growth (8.2%). These indicators highlight economic challenges, demanding vigilant monitoring and potential policy responses.
GBPUSD Technical Overview
The current price stands at 1.24476, with a resistance zone noted at 1.25846-1.26409. A breakthrough of the resistance zone could bolster the likelihood of a bullish reversal. Conversely, a breach of the support zone might signify a continuation of the bearish trend. Notably, the moving average 50 remains below the moving average 200, underscoring the prevailing bearish market sentiment. In contrast, the RSI has broken its trend line, suggesting that the current trend may either transition into a sideways pattern (with potential downside continuation) or mark the onset of a bullish reversal phase.
Economic Releases To Watch
Tuesday, September 12, 2023
BoE MPC Member Mann
Average Earnings Index +Bonus (Jul).
Forecast 8.2%, previous8.2%
Claimant Count Change (Aug)
Forecast 17,1K, previous 29K
Employment Change 3M/3M (MoM) (Jul)
Forecast -185K, previous -66K
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