GBP/USD backing away from the week's high with US NFP and tariff action in the pipe


  • The Sterling is drifting back toward's the week's opening prices as a bullish correction looks set to end prematurely.
  • Friday brings the US NFP, as well as the first volleys in a trade war between the US and China.

The GBP/USD has wound up flat on the week, trading just above the 1.3200 major level just ahead of London's Friday market opening, and the Sterling is struggling to develop a bullish correction against the Greenback after falling into new eight-month lows last week at 1.3049.

Friday is a thin showing for the GBP on the economic calendar, with only low-tier Halifax Housing Prices indicators due at 07:30 GMT, with the m/m figure expected to come in at 0.3% (last 1.5%).

The broader market focus will be on tariffs for Friday, with the US set to impose import fees on $34 billion in Chinese goods coming into effect after weeks of waiting. China has already promised a quick turnaround on retaliatory tariffs of their own, and the US will be busy getting ready for yet further tariffs to impose on $450 billion in Chinese trade goods.

Friday also brings the latest reading of the US Non-Farm Payrolls, dropping at 12:30 GMT, and as noted by FXStreet's own Valeria Bednarik, "market players are expecting the US economy to have added 195K new jobs in June, the unemployment rate is seen at record lows of 3.8%, while as usual, wages are barely expected to show signs of life, up monthly basis 0.3% and by 2.8% YoY."

GBP/USD levels to watch

The pair has slid towards the 1.3200 key level once again after peaking for the week near 1.3275, and a continued bearish move for the Sterling will quickly see the pairing fall into the week's low near 1.3095, while a further push below that will see the GBP/USD pushing into fresh lows for 2018 below 1.3050; meanwhile, a bullish reversal will have to contend with resistance from last week's high at 1.3290, with further support piled up from consecutive lower highs from 1.3445 to 1.3490.

Support levels: 1.3205 1.3170 1.3130     

Resistance levels:  1.3265 1.3300 1.3335

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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD drops below 1.1300 for the first time in two weeks

Euro held up well on Monday despite the market’s deeply risk-off tone, with the pair finding good dip-buying interest when it hit the 1.1300 level earlier in the session and recovering to trade flat on the day in the 1.1320s.

EUR/USD News

GBP/USD extends daily slide toward 1.3450

GBP/USD continues to stretch lower toward mid-1.3400s on Monday as the mood continues to sour. Wall Street's main indexes are down between 1.7% and 2.1% after the disappointing PMI data from the US.

GBP/USD News

XAU/USD bulls moving in on the psychological $1,850

Gold is headed for a positive close on Monday following a heavily risk-off session and a run for safer havens. At the time of writing, gold is up 0.3% after climbing from a low of $1,829.76 and reaching a high of $1,844.37 so far with eyes on the psychological $1,850 level. 

Gold News

Crypto carnage continues to unfold

Bitcoin price has witnessed a massive crash over the past week, undoing the gains seen since July 25. Ethereum, Ripple and other altcoins have followed suit, experiencing an even worse crash. 

Read more

US: Markit Services PMI falls to 50.9 versus 55.0 expected

Manufacturing, Services and Composite PMI all fell to their lowest levels since 2020. There didn't seem to be much reaction at the time but the downbeat data likely won't help the market's mood improve. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures