GBPUSD analysis week 47🌐Fundamental Analysis
UK employment figures largely beat expectations, but wage growth fueled inflation concerns. While jobless claims were lower than forecast, the number of people claiming unemployment benefits still rose from the previous month's revised figure.
The Bank of England's (BoE) latest Monetary Policy Report is due out on Wednesday morning, and investors will be looking for hints on how the BoE plans to deal with the unbalanced UK economy that continues to struggle with inflation numbers. On the US side, key CPI inflation figures are due to hit the market. Headline CPI inflation is expected to have edged higher to 2.6% year-on-year from September's 2.4%. Core CPI inflation is expected to have held steady at 3.3% year-on-year. The monthly figures for both inflation are generally expected to remain unchanged from the previous month.
🕯Technical Analysis
The downtrend is still showing no signs of stopping for GBPUSD. The next important support zone that the pair is aiming for is 1.2470, which is the old bottom area that saw strong price reaction from buyers in May. Besides, the possibility that the pair will still stick to the trendline and fall to this support zone, when the buying force is strong enough to break the trendline, the market will also turn around. Hopefully, the bullish waves can break the trendline and form an uptrend towards the resistance of 1.271-1.277-1.286.
📉📈Trading signals
BUY GBPUSD 1.247-1.245 Stoploss 1.243
SELL GBPUSD 1.271-1.273 Stoploss 1.276
