- Average weekly earnings in the UK met forecasts of 4.9%.
- Market participants maintained the chances of a November BoE rate cut to 80%.
- The dollar remained firm due to a change in tone among Fed officials.
GBP/USD price analysis shows little change as the pound remains in a tight range. UK employment data did not change the outlook for a rate cut by the Bank of England. Market participants are focused on upcoming inflation data. Meanwhile, the dollar remained steady as policymakers took a cautious tone on interest rate cuts.
–Are you interested in learning more about ECN brokers? Check out our detailed guide-
Data on Tuesday revealed that average weekly earnings in the UK met forecasts of 4.9%. Meanwhile, monthly jobless claims rose to 27,900, above the estimate of 20,200. However, the figures had little impact on the pound. Moreover, market participants maintained the chances of a November BoE rate cut to 80%.
Meanwhile, traders are eagerly awaiting the inflation report due on Wednesday. Price pressures in the UK have eased significantly. Economists believe that in September inflation will calm down further and reach 1.9%. A lower figure would increase the likelihood of a November rate cut by the Bank of England. Meanwhile, a sharp surprise would boost the pound by dampening expectations of a rate cut.
Elsewhere, the greenback held steady amid a shift in tone among Fed officials. On Monday, two policymakers said the U.S. central bank should proceed with caution. These sentiments come after recent data showed a strong economy. At the same time, inflation in September was higher than expected. As a result, market participants see little chance of a Fed pause in November. This week, US retail sales will further shape the outlook for a rate cut.
GBP/USD key events today
Market participants will continue to digest the employment numbers as there will be no more key events.
GBP/USD Technical Price Analysis: Bulls Test 30-SMA Resistance
From the technical side, GBP/USD price challenges the 30-SMA resistance. The price remained in a tight consolidation, slightly below the SMA, indicating a period of indecision. However, the RSI supports an upcoming bullish reversal as it has made a bullish divergence. The bearish momentum faded when the price reached the support level of 1.3051.
–Are you interested in learning more about making money on forex? Check out our detailed guide-
If the bulls take control with a break above the 30-SMA, the price will target the 1.3201 resistance level. Otherwise, the downtrend is likely to continue with a new low below 1.3051.
Do you want to trade Forex now? Invest in eToro!
67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing money.
