On September 16, 2025, the British Pound spiked up against the US Dollar. GBP/USD was seen recently at 1.3636, up a whopping 0.3820. That’s a 0.28% improvement on the day, which is the dollar’s second straight day of dollar advances against the currency pair. You can see how investors reacted after the release of the UK employment report. Despite the report revealing a drop in payrolls, it wasn’t enough to curb market optimism.
According to the most recent data from the Bureau of Labor Statistics, payrolls fell by eight thousand workers in August. That’s the seventh straight month of declining numbers. The employment report seemed to bolster expectations regarding the Bank of England’s interest rate decision, scheduled for announcement at Thursday’s meeting. Most analysts are predicting that the central bank will hold its rate at 4.0%. This decision has been crucial in bolstering the pound.
Market Reactions to Employment Data
The report, while likely to create downward pressure on GBP/USD, was viewed positively by investors. The market took the news in a positive light, resulting in a strong pound appreciation. The currency pair has recently pushed up against 1.3629 resistance. If it is able to push past this point, then further resistance is seen at 1.3662.
The implications of the employment report went far beyond what the markets did in reaction immediately. As multiple analysts pointed out, the results would make it easier for Fed officials to justify dovish monetary policy changes. The market’s expectations around interest rates have shifted slightly upwards following the report, indicating confidence in the Bank of England’s continued stability in its monetary policy.
Technical Analysis of GBP/USD
The daily GBP/USD chart for September 16, 2025 provides a clearer look at this two-sided action to come. It illustrates the complex workings at play between both support and resistance floors. Currently, 1.3588 and 1.3555 are shown as major support levels for the pair. These numbers act as a backstop to any major downturn, letting traders look at their books with more objectivity.
With GBP/USD nearing key resistance at 1.3629, many traders have had an eye on trading ranges. A breakout above this level might generate enough bullish momentum. On the contrary, if it refuses to hold above the support levels, we could enter into an uptick of volatility. It’s important for traders to stay on their toes as they ride these waves.