GBP/USD: 1.3250 still a distant dream ahead of UK jobs?

The GBP/USD pair remained better bid in the Asian trades, as the bulls consolidated the American recovery in a bid to regain 1.32 handle ahead of the UK labour market report due later today at 0830 GMT.

More Losses in Store for GBP?

The spot is seen facing stiff resistance just shy of 1.3200 so far this Wednesday, as the sentiment around the pound continues to remain undermined by the cautious BOE speaks delivered yesterday.

The BOE officials, including board members Tenreyro and Ramsden as well as Governor Carney, expressed their concerns over inflation peaking over 3% this month, while having failed to shed fresh light on the prospects of a Nov rate hike.

BOE’s Tenreyro: MPC far from the point at which we will unwind QE

BOE’s Ramsden: Loss of market confidence could lead to higher BOE rates, weaker GBP

BOE’s Carney: BOE rate hike in coming months may be appropriate

Meanwhile, the UK inflation report release did little to offer any respite to the GBP bulls, as the Brexit uncertainty added to the renewed weakness in Cable, despite EU Brexit negotiator Barnier's remarks, suggesting that the EU has no intention of holding up the Brexit process.

More so, narrowing monetary divergence between the Fed and BOE is back in play, especially after yesterday’s Fedspeaks and upbeat US macro news, which continue to back the case for a Dec rate hike and 3 more rate hikes next year. The US import prices edged higher, while industrial production also rose 0.3% and Oct NAHB housing market index jumped to 68 vs 64 expected.

Looking ahead, the major eagerly awaits the release of the UK employment data, with a favorable print across all indicators to take the rate further towards 1.3250 levels, while a downside surprise could knock-off GBP/USD back to the three-day lows of 1.3155.

GBP/USD Technical View

Matias Salord, Analyst at FXStreet noted: “To the upside, the next resistance is seen at 1.3200 and above at 1.3260 (uptrend line from last week highs). A slide back under 1.3160, would expose 1.3120 (Oct 12 low) and below, the next support might lie at 1.3070 (last week low).”