Oil Prices Rebound Ahead of U.S.-Russia Peace Talks.
Pound Sterling strengthens following positive UK employment figures
FUNDAMENTAL OVERVIEW:
The Pound Sterling (GBP) gained sharply against major peers on Tuesday following robust UK labor market data for the three months ending June.
According to the Office for National Statistics (ONS), the economy added 239K jobs in Q2, far surpassing the 134K recorded in the prior three-month period, marking a strong rebound from earlier signs of hiring reluctance linked to higher employer social security contributions.
The ILO Unemployment Rate remained steady at 4.7% as forecast, while July’s Claimant Count Change fell by 6.2K, defying expectations for a 20.8K increase. Wage growth showed mild moderation, with Average Earnings excluding bonuses holding at 5% annually and earnings including bonuses easing to 4.6% from 5%.
The strong labour data supports the Bank of England’s cautious approach to monetary easing, following last week’s narrow decision to cut rates by 25 bps to 4%. Markets now turn attention to Thursday’s release of UK Preliminary Q2 GDP and June factory output data.
GBP/USD TECHNICAL ANALYSIS CHART:
Technical Overview:
GBP/USD is trading within an up channel.
GBP/USD is moving above all the Moving Averages (SMA).
The Relative Strength Index (RSI) is in the Buying Zone, while the Stochastic oscillator suggests a Positive trend.
Immediate Resistance level: 1.3590
Immediate support level: 1.3398
HOW TO TRADE GBP/USD
After a sharp rise, GBP/USD faced resistance and quickly reversed to the downside. However, the decline was short-lived as the pair found support and rebounded higher. It has now broken above its immediate resistance zone and is trading above that level. If GBP/USD sustains this position, further upside movement could follow.