GBPUSD fell sharply on Tuesday 13.10.2020
The UK unemployment rate has surged to 4,5%, its highest level in over three years as the pandemic continues to hit jobs. This number came on Tuesday from the Office for National Statistics (ONS) and shows the rise in unemployment for the the three months to August. The previous rate was 4.1%. Redundancies also rose to their highest level since 2009.
The ONS said that an estimated 1.5 million people were unemployed between June and August, while 227,000 were made redundant. There had been a sharp increase in those out of work, especially among young people.
Sectors such as hospitality, travel and recruitment have been hit hardly and the pain continues, as local restrictions will force pubs, bars and other hospitality and leisure businesses in England to close in the most infectious areas. That will lead to more job losses and the unemployment rate may rise much higher by the end of this year.
The released data and the uncertainties surrounding the Brexit outlook had an immediate effect on the course of the British pound, which fell against the dollar, yen, Canadian dollar and the Swiss frank as well. The GBPUSD pair fell sharply from the 1.3065 level and found support only at 1.2860 on Wednesday morning. We could see a reaction in price movement, which could be tested by the resistance levels around 1.2964 – 1.2983 or 1.3010. These levels are converging with the 50 – 61.8 and 78.6 Fibonacci levels. In case of breaking this mornings low, the course could find its first support around the 1.2822 – 1.2846 area.