Sterling found support after UK labour data beat expectations, with unemployment at 4.7% versus a 4.9% forecast, while earnings excluding bonuses rose 3.7% over the three months to August against a 3.6% estimate. The figures fed into Bank of England tightening expectations and helped lift GBP on the session.
Technical Analysis and Chart Signals
On the charts, analysts pointed to a potential bull flag on the short-term GBP/USD setup, following a sharp rebound from last Wednesday’s post-US CPI low and a bullish weekly reversal described as an outside-range week.
Upcoming Policy Events
The next policy touchpoint cited was the 5 November MPC meeting, alongside a scheduled speech from BoE policymaker Megan Greene at 13ET.
