Pound Sterling Treads Cautiously Ahead of UK Employment Data

The Pound Sterling (GBP) is grappling with uncertainty as investors await the release of UK Employment data on Tuesday. The GBP/USD pair's outlook is precarious, with economists predicting a decline in employment levels for the three months up to August, indicating that companies are reducing their workforces due to a bleak demand outlook.

Increased interest rates by the Bank of England (BoE) and persistent price pressures have significantly reduced households' real income, thereby dampening demand. Additionally, escalating tensions in the Israel-Palestine region contribute to uncertainty and have the potential to drive up energy prices, further intensifying inflationary pressures. Given this situation, investors anticipate that the BoE will maintain its current interest rates for the second consecutive time in November.

The reading continues to be the same for the GBP/USD as it is entering an accumulation phase while waiting for a clear direction. The short-term reading seems bearish going toward the next support at 1.2050.

Resistance 3	Resistance 2	Resistance 1	Support 1	Support 2	Support 3
1.2450	1.2300	1.2200	1.2050	1.2000	1.1820