• GBP/USD declined on Tuesday as investors booked profits on sterling's August rally ahead of key US jobs data.
• Investor focus this week will squarely be on the U.S. payrolls data after Fed Chair Jerome Powell last month endorsed an imminent start to interest rate cuts.
•Economists polled expect an increase of 165,000 U.S. jobs in August, up from a rise of 114,000 in July
• Markets are pricing in a 69% chance of a 25 basis points (bps) cut when the Fed meets on Sept. 17 and 18, with a 31% probability of a 50-bps cut, CME FedWatch tool showed.
• Immediate resistance is located at 1.3151( 38.2%fib), any close above will push the pair towards 1.3230( Aug 29th high)
• Strong support is seen at 1.3055(50%fib) and break below could take the pair towards 1.3000(Psychological level).
Recommendation: Good to sell around 1.3110, with stop loss of 1.3180 and target price of 1.3050.
