GBPUSD Breaks Below 1.23 on Strong US unemployment

GBPUSD is trading 0.27% lower at 1.2297 after the US unemployment fell to 50-year low in September at 3.5% beating analysts forecast of 3.7%. The Nonfarm payrolls increased by 136K in September vs the expectations of 145K. On the Brexit front, the UK government will ask EU for Brexit extension if they fail to reach agreement by October 19. GBPUSD lost almost 30 pips on the news.

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GBPUSD Technical Analysis

The outlook is neutral for GBPUSD as it trades between the 50 and 100-day moving averages since September failing to make a decisive break in each direction. Currently, immediate resistance can be found at the daily high of 1.2356, with more offers probably emerging at the 1.2427, the 100-day moving average. On the downside, the first support level for GBPUSD stands at 1.2275 the daily low then at 1.2264 yesterday’s low. A convincing break below 1.2264 level will open the way for a decline down to 1.2204, the low from October 1st.

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