InstaForex

October 14, 2021

Gloomy UK Jobs Report, GBP/USD Still Looking For A Clear Direction

 The UK jobs report published at the start of the European session yesterday was seen as not very encouraging and failed to support the Pound’s movement in the market.


The focus will be on the UK Gross Domestic Product (GDP) economic growth data for August which will be released at the beginning of the European session today (Wednesday) along with several other economic data including UK industrial production.




On the price chart of the GBP/USD pair yesterday saw a bullish attempt towards the opening of the New York session, but the price declined again until the end of the session.


After signaling the end of the bullish pattern last week, investors remained cautious as prices have yet to show a clear decline.


The Moving Average 50 (MA50) barrier level on the 1 -hour time frame restrained the price increase, but yesterday's price decline only reached the level around 1.35700.


In fact, the price increase was seen again at the beginning of the Asian session this morning passing the 1.36000 level and testing the MA50 barrier.



Investors will see if UK GDP data will provide a clearer price direction for the Pound in the European session soon.


If the price increase continues, the price high level reached at the beginning of the week around 1.36700 will be re -tested before the price heads to the focus resistance level of 1.37000.


A higher rise above the resistance will also test the 1.38000 high for the price to record the latest 4 -week high.


On the other hand, if the price plunges lower, the RBS (resistance become support) zone at 1.35000 will be the focus of the price.


The continued lower decline will hover in the support zone 1.34200-1.34000 which was hit by the price at the end of last September.