FxWirePro: GBP/USD extends decline as soft UK jobs data fuels BoE rate cut bets

• GBP/USD slipped lower on Wednesday as worsening UK labor market bolstered Bank of England rate cut bets.

• Official figures on Tuesday showed a rise in the UK jobless rate to 5%, accompanied by a moderation in wage growth over the three months to September.

• British wage growth slowed in the three months to September, data showed on Tuesday, bolstering expectations that the Bank of England could cut rates next month.

• The Office for National Statistics said Tuesday that wage growth, excluding bonuses, eased slightly to 4.6% in the three months to September from a year earlier.

• Softer labour market and pay figures reinforced arguments from Bank of England doves calling for a rate reduction at the December 18 meeting, as mounting evidence points to a cooling UK economy.

• Bank of England held its benchmark rate at 4% last week while hinting at a possible cut in December.

•   Immediate resistance is located at 1.3176(38.2%fib), any close above will push the pair towards 1.3246 (SMA 20)

•  Strong support is seen at 1.3019(23.6%fib) and break below could take the pair towards 1.2987(Lower BB).

  Recommendation: Good to sell around 1.3120 , with stop loss of 1.3190 and target price of 1.3000