GBP/USD Price Remains Flat Around 1.32 After UK Jobs Report

• Amid moderate dollar strength, GBP/USD struggled to find significant support.
• The cops failed to get their batteries recharged despite the bullish UK employment data.
• The uncertainty about Brexit has made it hard to bet on the Bank of England’s rate cut on rate hikes.

Following the release of UK employment data, the GBP/USD price held steady above 1.3200 as the USD bulls provide no respite.

The National Statistics Bureau reported that people receiving unemployment benefits decreased by 498,000 in November, compared with 149,000 the month before. Additionally, the ILO’s unemployment rate fell from 4.3% to 4.2% in the three months to October. Additionally, the pressure on wages eased toward the end of the year.

However, the data failed to provide much of a boost to the British pound since the Bank of England is unlikely to raise rates at its upcoming meeting on Thursday. In addition, Brexit uncertainty dampened the pound’s gains and limited the upside potential of the GBP/USD pair amid moderate strengthening of the US dollar.

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Despite the prospect of Fed tightening soon, the dollar remained steady near a weekly high. Money markets indicate that a possible rally may occur through June 2022, and another rally may occur in November. The proliferation of the Omicron variant has also strengthened the safe dollar.

The inability of the GBP/USD pair to gain significant support suggests that the recent downtrend since October is far from over. However, given the risks associated with central bank-related events, investors may opt-out of aggressive interest rates. On Wednesday, the Fed will announce its decision, and the Bank of England will meet on Thursday.

As a result, it is advisable to wait for the assumption to drop below 1.3200 before doing another write-off. It is now expected that the US PPI will gain momentum at the start of the North American session. To take advantage of some of the opportunities around the GBP/USD pair, trading will be based on broader market risk sentiment in the future.

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GBP/USD price technical analysis: Clueless at 1.3200

The GBP/USD price dips below the 20-period SMA on the 4-hour chart. However, the pair might find some respite near the 1.3200 area. Although the technical outlook is negative, the pair is still within the broad range of 1.3160 to 1.3300. The average daily range is 30% so far, which is quite low as we have already been in the London session. Furthermore, the volume data suggests no directional bias. Hence, it is prudent to wait for a decisive breakout to find a trading opportunity.