• 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
