• GBP/USD trades virtually unchanged slightly below 1.2450 on Friday.
  • The pair remains on track to end the fourth straight week in positive territory.
  • Nonfarm Payrolls in the US are expected to rise by 240K in March.

GBP/USD has gone into a consolidation phase a few pips below 1.2450 after having closed in negative territory for the second day in a row on Thursday. Thin trading volumes on Good Friday are likely to force the pair to remain directionless even after the March jobs report from the United States. On a weekly basis, GBP/USD looks to post gains for the fourth straight time. 

Although Wall Street's main indexes managed to close marginally higher on Thursday, the US Dollar (USD) didn't have a difficult time staying resilient against its rivals, supported by the modest recovery seen in the US Treasury bond yields.

In the early American session, the US Bureau of Labor Statistics will release the labor market report for March. Nonfarm Payrolls (NFP) are forecast to rise by 240,000 and the Unemployment Rate is expected to stay unchanged at 3.6%. Moreover, Average Hourly Earnings growth is seen declining to 4.3% on a yearly basis from 4.6% in February.

Investors could start reassessing the US Federal Reserve's rate outlook and reconsider the possibility of another 25 basis points (bps) rate hike in case the NFP reading and the wage inflation come in stronger than expected. On the other hand, a weak growth in NFP could feed into the market expectation of the Fed leaving its policy rate unchanged at the next policy meeting. According to the CME Group FedWatch Tool, the probability of one more 25 bps rate increase currently stands at 52.7%.

Nevertheless, it will not be easy to figure out how the jobs report will influence the Fed's rate outlook amid the Easter holiday.  

GBP/USD Technical Analysis

GBP/USD dropped below the 20-period Simple Moving Average (SMA) on Thursday and the last four four-hour candles closed below that level. Additionally, the pair stays slightly below the lower limit of the ascending regression channel, which currently aligns as immediate resistance at 1.2450.

In case 1.2450 stays intact, an extended downward correction toward 1.2400 (Fibonacci 23.6% retracement of the latest uptrend, 50-period SMA) and 1.2350 (static level) could be witnessed.

On the upside, 1.2470 (20-period SMA), 1.2500 (psychological level, end-point of uptrend) and 1.2525 (April 4 high) align as resistances.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD clings to modest gains above 1.0650 ahead of US data

EUR/USD clings to modest gains above 1.0650 ahead of US data

EUR/USD trades modestly higher on the day above 1.0650 in the early American session on Tuesday. The upbeat PMI reports from the Eurozone and Germany support the Euro as market focus shift to US PMI data.

EUR/USD News

GBP/USD extends rebound, tests 1.2400

GBP/USD extends rebound, tests 1.2400

GBP/USD preserves its recovery momentum and trades near 1.2400 in the second half of the day on Tuesday. The data from the UK showed that the private sector continued to grow at an accelerating pace in April, helping Pound Sterling gather strength against its rivals.

GBP/USD News

Gold flirts with $2,300 amid receding safe-haven demand

Gold flirts with $2,300 amid receding safe-haven demand

Gold (XAU/USD) remains under heavy selling pressure for the second straight day on Tuesday and languishes near its lowest level in over two weeks, around the $2,300 mark in the European session. Eyes on US PMI data. 

Gold News

Here’s why Ondo price hit new ATH amid bearish market outlook Premium

Here’s why Ondo price hit new ATH amid bearish market outlook

Ondo price shows no signs of slowing down after setting up an all-time high (ATH) at $1.05 on March 31. This development is likely to be followed by a correction and ATH but not necessarily in that order.

Read more

US S&P Global PMIs Preview: Economic expansion set to keep momentum in April

US S&P Global PMIs Preview: Economic expansion set to keep momentum in April

S&P Global Manufacturing PMI and Services PMI are both expected to come in at 52 in April’s flash estimate, highlighting an ongoing expansion in the private sector’s economic activity.

Read more

Majors

Cryptocurrencies

Signatures