1.10 Holds for GBP/USD After Positive UK Employment
GBP/USD has jumped after sellers failed to push below this level yesterday, although the sentiment still looks weak
GBP/USD has made a strong jump in the last week of September, as the Bank of England intervened in the bond market, stabilizing them for some time. That improved the sentiment for the GBP, which surged from 1.0350s to 1.15, where it met the 200 SMA (purple) which acted as resistance.
GBP/USD H4 Chart – MAs Are Acting As Resistance
The 100 SMA is providing resistance today
The price reversed back down and has been bearish for nearly a week now, but the decline is not as strong as before. Yesterday tried the big round level at 1.10 but they gave up and today we saw a retrace higher after the UK employment report for August, which is displayed below. Although the 100 SMA (green) is providing resistance at the top, so it seems like the downside momentum will resume again soon and this time the 1.10 level will probably be broken.
UK August Employment Report
- UK Unemployment Rate: 3.5% (Forecast 3.6%, Previous 3.6%)
- UK Employment Change: -109k (Forecast -160k, Previous 40k)
- UK Average Weekly Earnings YoY: 6.0% (Forecast 5.9%, Previous 5.5%)
- Office For National Statistics – UK Vacancies 1.246 Million In Three Months To September, A Decrease Of 46000 From April To June 2022
- The economic inactivity rate increased by 0.6% points to 21.7% from June to August. – the biggest such increase since records began in 1971
- Given the events going on at the BoE and Tory party policy movements, this data will have a minimal impact of the markets
The Bank of England should consider continuing an emergency bond-buying programme aimed at stabilising the market for UK government debt to October 31 “and possibly beyond”, the Pensions and Lifetime Savings Association said on Tuesday. “…many feel it should be extended to the next fiscal event on 31 October and possibly beyond, or if purchasing is ended, that additional measures should be put in place to manage market volatility.” Is it possible to conduct Quantitative Tightening and Quantitative Easing simultaneously??
GBP/USD Live Chart
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