Gbpusd drops due to rise in us job openings and strong dollar

GBPUSD Analysis

Performance after Wednesday
Period	Pct	Chg	Momentum
Wednesday	-0.67%	-92.6 Pips
Week to-date	-0.47%	-64.6 Pips
July	-0.57%	-77.8 Pips

Upcoming key events (London Time)

Thu 01:30 PM USD Nonfarm Payroll Employment

What happened lately

In May 2025, the U.S. Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings, climbing to 7.769 million from a revised figure of 7.395 million in April. This rise in job openings suggests a strengthening labor market, indicating that businesses might be feeling confident about the economic outlook and are looking to expand their workforce. The increase in job opportunities can also reflect heightened demand for labor in certain sectors, possibly signaling wage pressure as employers compete for qualified candidates. However, if these job openings are not accompanied by a corresponding rise in employment, it might point to a skills mismatch or other structural issues in the labor market.

The GBPUSD currency pair experienced a decline of 0.67%, settling at 1.36522 on Wednesday. This movement in the forex market could be largely attributed to the robust U.S. economic data, particularly the increase in job openings, which enhances the attractiveness of the U.S. dollar. The positive signs from the U.S. labor market might lead to expectations of tighter monetary policy from the Federal Reserve, potentially leading to a stronger dollar. On the other hand, the upcoming U.S. Nonfarm Payroll Employment report is a high-impact event that traders are closely monitoring. A solid payroll number could further bolster the U.S. dollar, possibly exerting additional downward pressure on GBPUSD. Should the data reveal weaker-than-expected results, it may lead to a reassessment of the relative strength between the USD and GBP, affecting the currency pair dynamically. While the British Pound has its factors and challenges, including post-Brexit economic adjustments, U.S. economic indicators continue to play a significant role in its valuation against the dollar.

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What can we expect from GBPUSD today?

GBPUSD on Wednesday dropped -0.67% to 1.36522. Price is below 9-Day EMA while Stochastic is falling.

Updated daily direction for GBPUSD looks bearish as the pair posted lower in Wednesday trading session.

Looking ahead for the day, immediate support level is at S1 1.35588 with break below could see further selling pressure towards S2 at 1.34653. To the upside, with the current momentum bearish, we prefer to look at breakout of the recent daily high of 1.37525 as a potential indicator of buying interest. Failure to break the resistance level would continue to echo bearish sentiment. A close below 1.35622 would indicate selling pressure.

For the week to-date, take note that GBPUSD is mixed as compared to the prior week.

Key levels to watch out:

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