GBP/USD touched 1.3212 with the UK employment data for September but quickly retreated and now hovering around 1.3178. However, the downside appears limited as the improved household earnings could somehow justify raising interest rate despite the particularly difficult Brexit negotiation and the BoE is left with no alternative. This being said, the BoE rate hike will certainly be a one-off intervention and shouldn’t imply a path for gradually higher rates at this point.
The intermediate support for the pair lies at 1.3120/00 and a break below will open further down side to 1.3025 [Oct.6 low]
Support: 1.3150, 1.3120/00 & 1.3080.
Resistance: 1.3212, 1.3230/50 & 1.3290