GBPUSD was trading above 1.3200 on Tuesday despite the U.K. seeing another dismal employment release. The unemployment rate in the country rose to 4.8% as 164k jobs were shed.
The rise in the unemployment rate was expected by analysts and this is helping to reduce the bearish sentiment for the pound. Traders are happy to look further out with the potential for a Brexit deal and the furlough scheme being extended to March 2021. The Bank of England also announced a £150bn extension to its quantitative easing program last week so many will be expecting the job numbers to improve in the months ahead.
U.K. Prime Minister suffered a Brexit defeat on Monday after the House of Lords voted to strip clauses from his controversial Internal Markets Bill. The government has said it will retable the clauses when the bill returns to the House of Commons but it is yet another sign of the dysfunctional talks surrounding the EU exit and the deadline is getting ever closer with no deal and and continued legal wrangling.
The GBPUSD will be at risk of further volatility from the U.S. election where President Trump and his campaign team are continuing their legal challenges. The state of Arizona has been removed from Biden’s tally in the CNN projections so there are small signs that we may face some recounts or re-votes.
GBPUSD has paused in the last two sessions but is moving above the resistance near 1.3150 again. The pair trades at 1.3215 with the target being the 1.3488 level, which was a high on September 1st. Bullish traders could place a stop under the 1.3150 level. The Investing Cube team is currently available to help all levels of traders with the Forex Trading Course or one-to-one coaching.