In Wednesday's Asian trading session, GBP/USD witnessed some buying activity, seemingly preventing a retreat from the nearby 1.2300 level or the two-week high. The spot price attempted to hold above 1.2150 after a dip in the US Dollar (USD), although the upward momentum lacked conviction. GBP/USD was last seen trading just below the 1.2250 mark, where the 200-day Simple Moving Average (SMA) rests on the 4-hour chart. If the pair fails to reclaim this level, 1.2200 (Fibonacci 23.6% retracement of the latest downtrend) might be the next downside target, followed by 1.2175 (SMA 50, SMA 100).
Should GBP/USD stabilize above 1.2250, the next resistance levels could be considered at 1.2300 (psychological level, Fibonacci 38.2% retracement), and 1.2340 (static level).
Meanwhile, the Relative Strength Index (RSI) has decreased to 60 after a slight rise above 70, indicating that the recent price decline in this pair is more of a technical correction than a reversal. GBP/USD has lost its upward momentum and has been oscillating around 1.2250 after touching 1.2300 earlier in the day. Technical prospects suggest that the uptrend remains intact despite the recent price dip.
Unemployment data in the UK showed a decrease to 4.2% for the three months ending in August, down from 4.3%. The UK's Office for National Statistics (ONS) reported this positive change in employment, with a net figure of -82,000, better than the market's expected decrease of 198,000.
Additional data from the UK revealed a slight improvement in the S&P/CIPS Composite PMI, rising to 48.6 in early October from 48.5 in September. Evaluating the survey's results, Chris Williamson, Chief Economist at S&P Global Market Intelligence, stated that "the UK economy continued to suffer in October, with rising living costs, higher interest rates, and reduced exports believed to be the factors behind a third consecutive monthly decline in output."
Although the mixed data may have diminished some benefits for the British Pound, improved risk sentiment could assist GBP/USD in maintaining its position in the coming days. At the time of reporting, US stock index futures had risen from 0.35% to 0.6%, indicating a positive opening on Wall Street.
In the latter half of the day, market participants will closely monitor the S&P Global PMI data from the US to seek new market drivers. An unexpected increase in the Composite PMI could highlight the US economy's recovery potential and help the US Dollar (USD) stand firm against its counterparts.
Traders will also keep a close eye on the US stock market's developments. If risk appetite continues to dominate the financial markets during the US trading session, GBP/USD might begin to see further upside potential.
Stay tuned for the latest market updates.
Should GBP/USD stabilize above 1.2250, the next resistance levels could be considered at 1.2300 (psychological level, Fibonacci 38.2% retracement), and 1.2340 (static level).
Meanwhile, the Relative Strength Index (RSI) has decreased to 60 after a slight rise above 70, indicating that the recent price decline in this pair is more of a technical correction than a reversal. GBP/USD has lost its upward momentum and has been oscillating around 1.2250 after touching 1.2300 earlier in the day. Technical prospects suggest that the uptrend remains intact despite the recent price dip.
Unemployment data in the UK showed a decrease to 4.2% for the three months ending in August, down from 4.3%. The UK's Office for National Statistics (ONS) reported this positive change in employment, with a net figure of -82,000, better than the market's expected decrease of 198,000.
Additional data from the UK revealed a slight improvement in the S&P/CIPS Composite PMI, rising to 48.6 in early October from 48.5 in September. Evaluating the survey's results, Chris Williamson, Chief Economist at S&P Global Market Intelligence, stated that "the UK economy continued to suffer in October, with rising living costs, higher interest rates, and reduced exports believed to be the factors behind a third consecutive monthly decline in output."
Although the mixed data may have diminished some benefits for the British Pound, improved risk sentiment could assist GBP/USD in maintaining its position in the coming days. At the time of reporting, US stock index futures had risen from 0.35% to 0.6%, indicating a positive opening on Wall Street.
In the latter half of the day, market participants will closely monitor the S&P Global PMI data from the US to seek new market drivers. An unexpected increase in the Composite PMI could highlight the US economy's recovery potential and help the US Dollar (USD) stand firm against its counterparts.
Traders will also keep a close eye on the US stock market's developments. If risk appetite continues to dominate the financial markets during the US trading session, GBP/USD might begin to see further upside potential.
Stay tuned for the latest market updates.
