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      Breaks Down, Bearish Momentum Targets 1.2700

      Alan

      Forex

      Summary:

      Freshly released, the UK employment and economic data exerted significant downward pressure on the British pound.

      Sell

      GBPUSD

      EXP
      Trading

      1.31565

      Entry Price

      1.27500

      TP

      1.32200

      SL

      1.31660 -0.00249 -0.19%

      0

      Point

      Flat

      1.27500

      TP

      CLOSING

      1.31565

      Entry Price

      1.32200

      SL

      Fundamentals

      The latest UK labor market and wage data indicate a clear loosening in the job market: the three-month rolling unemployment rate has risen to around 5%, while both the number of employees on payrolls and wage growth have slowed. This reinforces market perceptions of economic weakness and expectations for monetary easing.
      Meanwhile, the preliminary GDP data for the third quarter showed a modest rebound in nominal growth, but it remains a tepid recovery that is unlikely to alter the overall slowdown trend. PMI data for the services and manufacturing sectors suggested divergence, but neither sector displayed strong or sustained expansion signals.
      On the inflation front, core inflation has eased from its highs and is now approaching 3.8%. As a result, the Bank of England recently decided by a narrow majority to keep the benchmark interest rate at 4% during its last meeting. However, the BoE explicitly stated that if inflation continues to decline, it would consider starting a rate-cutting cycle in the near term. Markets have already anticipated the possibility of a rate cut in December or later.

      Technical Analysis

      Breaks Down, Bearish Momentum Targets 1.2700_1
      Regarding the daily chart, GBP/USD broke down below the support zone between 1.3190 and 1.3000. In recent days, it rebounded toward the resistance level near 1.3190, but today's candle closed as a bearish body, showing weak downside movement. The overall candlestick structure now indicates a confirmed breakdown with a bounce that serves as a continuation pattern, displaying a notable strengthening of short-term bearish momentum. The pair is expected to retest the 1.3000 support level. A break below this level would further open the door to a downward move toward 1.2700.
      Selling at highs is recommended.

      Trading Recommendations

      Trading direction: Sell
      Entry price: 1.3150
      Target price: 1.2750
      Stop loss: 1.3220
      Valid Until: November 28, 2025, 23:00:00
      Support: 1.3000/1.2700
      Resistance: 1.3215/1.3248
      Risk Warnings and Investment Disclaimers
      You understand and acknowledge that there is a high degree of risk involved in trading with strategies. Following any strategies or investment methodologies is the potential for loss. The content on the site is being provided by our contributors and analysts for information purposes only. You alone are solely responsible for determining whether any trading assets, or securities, or strategy, or any other product is suitable for you based on your investment objectives and financial situation.

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