GBPUSD Chart Technical outlook struggles to recover despite upbeat UK jobs report bears target 1.3011
The UK reported a lower-than-expected increase in jobless claims: 23.7K. Moreover, the unemployment rate dropped to 4.1%. That is good news for the Sterling, but it is not enough to mitigate the strength of the US dollar. Fresh fears about the global economy have gripped markets after some optimism caught up late on Monday.
Tension is mounting ahead of Wednesday’s CPI release, and also other figures such as America’s weekly jobless claims report. I expect the Greenback to hold firm.
GBP/USD has some support at 1.3060, which is followed by 1.3011 and 1.2938. Resistance is at 1.3102, then 1.3145, where the 4h-50 SMA hits the price. That 4h-50 SMA has turned down, is a bearish sign.
