FxWirePro: GBP/USD loses further ground after soft UK employment data

• GBP/USD dipped below 1.3300 level on Tuesday after data showed growth in average British earnings slowed slightly in the three months to August.

•  The Office for National Statistics reported that average weekly earnings, excluding bonuses, rose 4.7% in the June August period compared with a year earlier, slightly below the 4.8% increase recorded in the three months to July and marking the slowest growth since May 2022.

• In the private sector, which is closely monitored by the BoE, earnings excluding bonuses rose 4.4% in the three months to August, while the unemployment rate ticked up to 4.8%.

• Looking ahead, gross domestic product figures scheduled for later this week, along with next week’s inflation data, will provide further insights into the health of the British economy and the likelihood of additional BoE rate cuts.

• Markets are not fully anticipating another BoE rate cut before March, though they assign roughly a 40% probability to a cut in December.

•  Immediate resistance is located at 1.3354( Oct 14th high), any close above will push the pair towards 1.3436(SMA 20)

•  Strong support is seen at 1.3248 (50%fib) and break below could take the pair towards 1.3200(Lower BB).

  Recommendation: Good to sell around 1.3270, with stop loss of 1.3350 and target price of 1.3200