GBP/USD outlook: Cable stands at the front foot ahead of US labor report

Slobodan Drvenica Windsor Brokers

GBP/USD

GBPUSD remains steady in European trading on Friday and attempts above 1.22 mark, in extension of Thursday’s rise, sparked by BOE’s decision, which markets saw as a hawkish hold.

Better than expected UK Oct Services PMI (although the sector contracts for the fourth consecutive month) added support to sterling as markets await release of key US labor report.

Non-farm payrolls are expected to rise by 180K in Oct compared to 336K new jobs added in Sep, average earning forecasted to tick up (Oct 0.3% m/m vs Sep 0.2%) and unemployment to stay unchanged at 3.8%.

Any stronger divergence of NFP numbers from forecasts would generate direction signal, with pound seen benefiting from weaker numbers, while jump above consensus would put the pair under pressure.

Initial support lays at 1.2175 (session low / 20DMA), followed by Thursday’s low (1.2152) and pivotal trendline support (1.2090) loss of which will be bearish.

Upper triangle boundary offers initial resistance at 1.2236, ahead of Oct 24 spike high at 1.2288 and Oct 11 top / falling 55DMA at 1.2337, violation of which to bring bulls fully in play.

Res: 1.2236; 1.2288; 1.2337; 1.2410.
Sup: 1.2175; 1.2152; 1.2080; 1.2069.

Interested in GBP/USD technicals? Check out the key levels

1. R3 1.2327
2. R2 1.2276
3. R1 1.224
PP 1.2189
1. S1 1.2152
2. S2 1.2101
3. S3 1.2065

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

EUR/USD softens below 1.1800 on Fed hawkish remarks

The EUR/USD pair edges lower to around 1.1775 during the early Asian session on Wednesday, pressured by a renewed US Dollar demand. Traders await the US President Donald Trump's State of the Union address later on Wednesday for clarity on fiscal policies.

GBP/USD regains 1.3500 and above

GBP/USD extends its advance for the third day in a row on Tuesday, this time retesting the area beyond the 1.3500 hurdle. Cable’s uptick comes despite decent gains in the Greenback and the dovish message from the BoE’s Bailey at the UK Parliament.

Gold consolidates below $5,150 as traders await Trump's State of the Union address

Gold steadies below the $5,150 level following the previous day's pullback from the monthly peak as traders opt to wait on the sidelines ahead of Trump's State of the Union address. In the meantime, trade-related uncertainties and geopolitical risks seem to act as a tailwind for the safe-haven bullion. However, the Fed's less hawkish outlook underpins the US Dollar, which, along with a positive risk tone, caps the upside for the non-yielding yellow metal.

Hyperliquid registers mild gains following CoinShares' ETP launch

Hyperliquid registered a 3% gain on Tuesday after CoinShares announced the launch of its Physical Hyperliquid Staking exchange-traded product, offering investors exposure to the token's price and staking yields.

The Citrini report: How a debatable AI narrative can shake Wall Street

That AI-related headline alone was enough to rattle investors.US stocks slid sharply on Monday after a widely circulated Citrini Research memo outlined a hypothetical “2028 Global Intelligence Crisis”, warning that rapid AI adoption could push US unemployment into double digits as early as by mid-2028.

XRP pressured by weak ETF flows and declining retail interest

Ripple (XRP) is edging lower, trading above its intraday low of $1.32 at the time of writing on Tuesday. The decline from its weekly opening of $1.39 reflects heightened volatility in the broader cryptocurrency market, accentuated by tariff-triggered uncertainty.