GBP/USD and a Return to $1.1450 in the Hands of JOLTs Job Openings
From the Bank of England, there are no Monetary Policy member speeches for the markets to consider. However, the markets need to track any central bank comments to the media following the government’s U-turn.
Later today, US economic indicators will provide the GBP/USD pair with direction.
GBP/USD Price Action
At the time of writing, the Pound was up 0.33% to $1.13571. A choppy start to the day saw the GBP/USD fall to an early low of $1.12798 before rising to a high of $1.13660.
The Pound needs to avoid the $1.1247 pivot to target the First Major Resistance Level (R1) at $1.1408. Further commentary and any Bank of England reaction to the UK government’s U-turn will draw interest.
In the case of another extended rally, the GBP/USD would likely test the Second Major Resistance Level (R2) at $1.1496 and resistance at $1.15. The Third Major Resistance Level (R3) sits at $1.1745.
Following the market reaction to the US ISM Manufacturing PMI and its sub-components, weak US JOLTs job openings could deliver another GBP/USD breakout.
A fall through the pivot would see the Pound test the First Major Support Level (S1) at $1.1159. Barring an extended sell-off, the Pound would likely avoid sub-$1.11 and the Second Major Support Level (S2) at $1.0998.
The Third Major Support Level (S3) sits at $1.0749.
Looking at the EMAs and the 4-hourly chart, the EMAs send a more bullish signal. The GBP/USD sits above the 100-day EMA, currently at $1.12041.
The 50-day closed in on the 100-day EMA, with the 100-day EMA narrowing to the 200-day EMA, delivering bullish signals. A GBP/USD move through R1 ($1.1408) and the 200-day EMA ($1.14116) would give the bulls a look at R2 ($1.1496).
However, a fall through the 100-day EMA ($1.12041) would give the bears a run at S1 ($1.1159) and the 50-day EMA ($1.11004).
The US Session
It is a busy day ahead on the US economic calendar. The US labor market is in the spotlight.
US core durable goods orders will draw interest alongside August’s JOLTs job openings report. However, market sensitivity to US labor market numbers will give the JOLTs job openings more influence ahead of the September nonfarm payroll report.
FOMC member commentary will also draw interest, with members Williams, Logan, Mester, and Fed Governor Jefferson speaking today.