• GBP/USD fell to an intra-day low of 1.3382 on Thursday as markets digested disappointing labor market figures from the UK.
• Data from the Office for National Statistics (ONS) revealed that payrolled employment dropped by 41,000 in June compared to May, signaling cracks in the UK job market.
• The ILO jobless rate for May rose to 4.7%, higher than the 4.6% forecast. Meanwhile, annual wage growth excluding bonuses came in at 5.0%, slightly above the 4.9% expected.
• The soft labor market data reinforced expectations that the Bank of England may cut interest rates by 25 basis points to 4.00% at its next policy meeting on August 7.
• Immediate resistance is located at 1.3486(Daily high), any close above will push the pair towards 1.3560 (38.2%fib)
• Strong support is seen at 1.3378(50%fib) and break below could take the pair towards 1.3304(Lower BB).
Recommendation: Good to sell around 1.3420 with stop loss of 1.3500 and target price of 1.3340
