FxWirePro: GBP/USD slips after UK jobs data, vulnerable to more downside

• GBP/USD  slipped lower  on Tuesday  after softer UK labour market data reinforced concerns about the strength of the British economy.

• The unemployment rate unexpectedly rose to 5.0% in March, above expectations for a 4.9% reading, signalling growing pressure in the labour market as businesses continue to scale back hiring activity.

• Data also showed employers advertised fewer job openings in April, suggesting companies remain cautious amid slowing economic momentum and elevated borrowing costs.

• The pound had rallied on Monday, briefly climbing to 1.3449, after comments from Andy Burnham triggered a wave of GBP short-covering.

• Burnham reassured markets by pledging adherence to the UK’s fiscal rules should he become prime minister, easing fears of aggressive government spending and supporting confidence in UK assets.

•Investor attention is now shifting to the UK inflation report due Wednesday at 0700 GMT. Markets expect April CPI to accelerate to 3.0%, a release that could heavily influence expectations for future Bank of England policy moves.

•   Immediate resistance is located at 1.3463 (50%fib)), any close above will push the pair towards 1.3519(SMA 20)

•  Strong support is seen at 1.3304 (38.2%fib) and break below could take the pair towards 1.3180(pril 6th low).

  Recommendation: Good to sell  around 1.3430, with stop loss of 1.3500 and target price of 1.3330