FxWirePro: GBP/USD extends losses after disappointing UK labour data

• GBP/USD extends losses on Tuesday  as sterling was weighed down after weaker-than-expected UK  labour market data.

•The UK unemployment rate rose to 5 per cent and wage growth slowed in the three months to September

• British wage growth eased in the three months to September, data on Tuesday showed, strengthening expectations of a Bank of England rate cut next month.

• The Office for National Statistics said Tuesday that wage growth, excluding bonuses, eased slightly to 4.6% in the three months to September from a year earlier.

• The soft employment and wage figures strengthened the case for Bank of England doves arguing for a rate cut at the December 18 meeting, as evidence mounts that the UK economy is cooling.

• Bank of England held its benchmark rate at 4% last week while hinting at a possible cut in December.

•   Immediate resistance is located at 1.3176(38.2%fib), any close above will push the pair towards 1.3246 (SMA 20)

•  Strong support is seen at 1.3019(23.6%fib) and break below could take the pair towards 1.2987(Lower BB).

  Recommendation: Good to sell around 1.3050 , with stop loss of 1.3100 and target price of 1.2950