The Pound drops on weak UK employment data, to retest support area at 1.2430. UK Unemployment rate increased to 4.2% in the three months to February against expectations of a 4% reading. Investors’ focus is on Wednesday’s UK CPI data for more clues about the BoE’s monetary policy outlook. The uninspiring UK employment figures have endorsed the theory that the BoE might start cutting rates ahead of schedule, which has punished the GBP.
Also on Tuesday, Fed Governor, Jerome Powell is expected to participate in a panel discussion in Washington. His comments about monetary policy might have some impact on US Dollar crosses. GBP/USD Price Analysis: Technical outlook Bears have pushed the pair back to the bottom of the monthly descending channel, at 1.2430, which is being tested at the moment. Last Friday’s low is right below there, at 1.2430. A clear break of that support area clears the path towards 1.2370.