Global macro overview for 19/10/2016:
The September UK labor market data were released this morning and they were pretty much in line with market expectations. The Claimant Count Change data were better than expected as market participants anticipated a 3k increase after 2.4k increase a month ago, but the figure revealed was at the level of 0.7k only. Moreover, Average Earnings excluding Bonus data are holding up nicely with 2.3% increase after 2.1% a month ago. In conclusion, the UK jobs market continues to look solid and so far, there are no signs of the post-Brexit catastrophe yet.
Let's now take a look at the GBP/USD technical picture in the intraday time frame. The good news from the UK has made the intraday sentiment more positive, so bulls are trying to break out above the technical resistance at the level of 1.2324. If this level is clearly broken then the next resistance is seen at the level of 1.2478.
