Will The Upcoming US Labor Data Keep The Pressure On The Pound?

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Fundamental approach:
- The Pound was mildly softer this week amid firmer US data impulses and pre-NFP caution, while UK growth signals from Aug PMIs offered only limited support to the Pound.
- UK Services PMI accelerated to 53.6 in Aug, the fastest in a year, hinting at resilient activity but with persistent employment softness and sticky price pressures, tempering BoE easing bets only modestly.
- On the US side, expectations around ISM prints and Friday’s payrolls supported the US dollar, fostering two‑way but USD‑tilted flows.
- Looking ahead, GBPUSD could remain range‑bound but potentially break on US NFP and ISM Services; strong US labor and services data may buoy US dollar, while a downside surprise in data could lift the Pound.

Technical approach:
- GBPUSD printed an engulfing candle, breaking the range of 1.3400-1.3580 to the downside and closing below both EMAs, indicating a short-term shift to bearish momentum.
- If GBPUSD remains below the resistance at 1.3400 and both EMAs, the price may plunge and retest the following support at 1.3175.
- On the contrary, closing above both EMAs may prompt a recovery to retest the following resistance at 1.3580.



Analysis by: Dat Tong, Senior Financial Markets Strategist at Exness

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