GBP/USD Outlook (13th August 2019)

Due to Brexit uncertainty, GBP/USD has been trending downwards for a period of time. On top of that, British Prime Minister Boris Johnson had made it clear to the public that he is determined to bring the UK out of the EU this coming October, deal or no-deal. Thus, the possibility of a no-deal Brexit has caused the British pound to weaken further. Yesterday, GBP/USD tested and rejected the key level of 1.21.

With the release of the British employment data earlier today, the market responded positively towards the slightly mixed results.

• Average Earnings Index 3m/y (Actual: 3.7%, Forecast: 3.7%, Previous: 3.5%)
  
• Claimant Count Change (Actual: 28.0K, Forecast: 42.0K, Previous: 31.4K)
  
• Unemployment Rate (Actual: 3.9%, Forecast: 3.8%, Previous 3.8%)
  

The British CPI y/y data is due for release tomorrow at 1630 (SGT).

• CPI y/y (Forecast: 1.9%, Previous: 2.0%)
  

If the released data is worse than or as forecasted, pound may weaken and GBP/USD may be testing the support level of 1.20000. At the moment, GBP/USD is moving between the support level of 1.20000 and the resistance level of 1.22000.