Gbpusd declines as US job openings increase in August

GBPUSD Analysis

Performance after Wednesday
Period	Pct	Chg	Momentum
Wednesday	-0.16%	-21.7 Pips
Week to-date	-0.9%	-120.2 Pips
October	-0.85%	-113.5 Pips

Upcoming key events (London Time)

Fri 01:30 PM USD Nonfarm Payroll Employment

What happened lately

In the United States, the Job Openings and Labor Turnover Survey (JOLTS) data for August revealed an increase in job openings, reaching 8.04 million, compared to a revised 7.711 million in July. This data, reported by the Bureau of Labor Statistics, indicates an expanding job market, suggesting increased demand for labor within the economy. An increase in job openings usually signifies that businesses are experiencing growth and require a bigger workforce to meet rising production demands or services. It also reflects employers’ optimistic outlook on the economic conditions despite challenges that might be present elsewhere in the economic landscape.

The GBPUSD currency pair dropped by 0.16% to 1.32631 on Wednesday. The rise in JOLTS data could contribute to the strengthening of the USD, as positive employment data generally signifies robust economic growth. This, in turn, heightens expectations of monetary policy adjustments by the Federal Reserve, including potential interest rate hikes, which make investing in USD more attractive compared to other currencies like the GBP. Such economic indicators typically impact currency trading by increasing the demand for US dollars. Market participants should also note the upcoming high-impact event, the Nonfarm Payroll Employment data release, which could further influence the GBPUSD movement based on job creation updates and market anticipation of Fed actions.

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What can we expect from GBPUSD today?

GBPUSD on Wednesday dropped -0.16% to 1.32631. Price is below 9-Day EMA while Stochastic is falling.

Updated daily direction for GBPUSD looks bearish as the pair posted lower in Wednesday trading session.

Looking ahead for the day, immediate support level is at S1 1.32373 with break below could see further selling pressure towards S2 at 1.32114. To the upside, with the current momentum bearish, we prefer to look at breakout of the recent daily high of 1.33054 as a potential indicator of buying interest. Failure to break the resistance level would continue to echo bearish sentiment. A close below 1.32455 would indicate selling pressure.

For the week to-date, take note that GBPUSD is bearish as the pair posted lower by -0.9%.

Key levels to watch out:

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