FX.co ★ Wiking | GBP/USD

The Pound Sterling (GBP) stabilized against the US Dollar (USD), rising by a mere 0.10% on Tuesday amid expectations around the outcome of the US midterm elections. The US manufacturing figures and a better-than-expected US JOLTS report have supported the Greenback and reduced its losses. At the time of writing, GBP/USD is trading at 1.3420. The US Bureau of Labor Statistics reported an increase in job openings from 7.19 to 7.523 for September in its JOLTS survey. The data also showed a rise in the hire rate from 3.3% to 3.4%. However, total separations remained steady at 3.3%. The data was favorable, as job vacancies led to hiring. Meanwhile, Factory Orders rose from 0.3% to 1.8% MoM in September, according to the US Census Bureau. Geopolitical factors are another behind-the-scenes force that will keep the GBP/USD recovery capped due to escalation risks. Al Araby reported that Washington and Tehran accepted the draft MOU; however, Iran refuted those reports, and the IRIB news agency says it denies being close to a deal with the US. Market focus now shifts to the US midterms. Per Polymarket data, there is a 95% probability of Democrats controlling the House of Representatives and a 78% probability of a majority in the US Senate. The USD Index (DXY), which gauges the dollar's value versus six other currencies, remains unchanged at 101.81. In the UK, investors await the BoE's monetary policy announcement on Thursday. The BoE is set to hike interest rates for the first time since August 2023. Three more interest rate increases in 2027 are seen by the money markets, based on Prime Terminal figures.

GBP/USD is trading at 1.3412 on the daily chart. The currency pair shows a mildly bullish short-term outlook, as it trades above the latest 50/100/200-day simple moving average cluster at 1.3371 and the close-rising support trend line at 1.3360, indicating underlying buying pressure at lower levels. The RSI(14) at 58.5 is in positive territory but below overbought, indicating upward momentum is still in play but not overbought. On the resistance side, near-term resistance is at the confluence of descending trend-line reactions, with the latest rejection levels at 1.3508 and 1.3544, followed by a higher resistance level at 1.3606 after breaking away from the latest support trend line. On the other hand, support is currently defined at the reclaimed moving average band at 1.3371 and the rising structural trend line at 1.3360.