The GBPUSD pair faced a decline at the rate of 1.26740 as a result of average economic data from the United States.

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• GBP/USD experienced losses due to US moderate economic data.

The pair currently trades last at 1.26740.

The previous day high was 1.2735 while the previous day low was 1.2653. The daily 38.2% Fib levels comes at 1.2684, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2703, expected to provide resistance.

GBP/USD struggles to recover from the previous day’s losses, hovering around 1.2680 during the Asian session on Friday. The pair is under pressure ahead of the releases of employment and manufacturing data from the United States (US).

The GBP/USD lost ground due to the moderate US data released on Thursday. The US Dollar Index (DXY) trades higher around 103.60 at the time of writing. As said, the US Core PCE improved to 4.2% in July as expected, from its previous 4.1%. In addition, US Jobless Claims for the week ending on August 25 showed a reading of 228K against the market consensus of 235K and the previous 232K and indicated that the labor market is still resilient.

However, market participants are taking a cautious stance, seeking fresh impetus around monetary policy tightening in September’s meeting by the Bank of England (BoE) and the gloomy economic situation of the United Kingdom (UK). The pair faced downward pressure despite hawkish sentiment around a 25 basis points (bps) interest rate hike, following the BoE Chief Economist Huw Pill’s hawkish statement made on Thursday. Pill expressed the view that the policy should maintain a significant level of restraint for an extended duration.

Additionally, the UK’s Financial Conduct Authority (FCA) stated early Friday morning in Asia, as reported by Reuters, that an increasingly competitive market is leading to more savings accounts offering higher interest rates. The FCA is working to ensure that British savings account holders can swiftly reap the advantages of higher interest rates, similar to how they promptly face increased costs when borrowing money. This initiative aims to create a balanced and equitable financial environment for consumers.

Investors will likely monitor the upcoming data from the US scheduled to be released on Friday, seeking more cues on the economic scenario in the country. These datasets include the US Average Hourly Earnings, Nonfarm Payrolls and ISM Manufacturing PMI.

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.2678 at the time of writing. Pair opened at 1.2673 and is trading with a change of 0.04 % .

The pair is trading below its 20 Daily moving average @ 1.2701, below its 50 Daily moving average @ 1.2779 , above its 100 Daily moving average @ 1.2648 and above its 200 Daily moving average @ 1.2413

The previous day high was 1.2735 while the previous day low was 1.2653. The daily 38.2% Fib levels comes at 1.2684, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2703, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.2639, 1.2605, 1.2557
• Pivot resistance is noted at 1.2721, 1.2769, 1.2803

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