US Dollar Strength and Economic Data Push GBP/USD Lower

The UK's ILO Unemployment Rate declined to 4.2% during the three months leading up to August, accompanied by a better-than-expected Employment Change of -82,000, surpassing the projected decrease of -198,000. However, the S&P/CIPS Composite PMI in early October showed that economic challenges persist, with a slight improvement to 48.6. On the other hand, the US PMI data exceeded expectations. The Manufacturing PMI rose from 49.8 to 50, and the Services PMI increased from 50.1 to 50.9.  

The PMI data favored the dollar and highlighted the resilience of the US economy compared to the UK. Additionally, geopolitical conflicts in the Middle East and the expectation of higher interest rates in the US resulted in renewed safe-haven flows, keeping the GBPUSD pair on the downside.  

Following the dollar's gains, the GBPUSD pair dropped again, with the next support level at around 1.2100. The US dollar maintains its lead among the major currencies. 

 

Resistance 3	Resistance 2	Resistance 1	Support 1	Support 2	Support 3
1.2570	1.2450	1.2300	1.2200	1.2100	1.2000