GBP/USD clinches fresh 2024 highs above 1.2800 ahead of US NFP data

GBP/USD attracts some buyers to a fresh 2024 high above 1.2800 on the weaker USD.
Fed Chair Powell said interest rate cuts may not be too far off if inflation signals cooperate.
Investors expect the BoE to lower interest rates after the Fed, which boost the Pound Sterling.
The US February labor market report will be a closely watched event.

Lallalit Srijandorn FXStreet

The GBP/USD pair holds ground above the 1.2800 psychological barrier during the early Asian trading hours on Friday. The selling pressure in the US Dollar (USD) provides some support to the major pair. The highlight on Friday will be the US labor market data for February. GBP/USD currently trades around 1.2810, up 0.01% on the day.

The Federal Reserve (Fed) Chairman Jerome Powell presents the Monetary Policy Report and responds to questions before the Senate Banking Committee on Thursday. Powell said that interest rate cuts may not be too far off if inflation signals cooperate. Fed Chair didn’t provide a precise timetable for rate cuts but noted that the day could be coming soon. Investors expect the first cut to come in June, with four reductions totaling a full percentage point by the end of 2024.

On the other hand, the financial markets anticipate that the Bank of England (BoE) to lower interest rates after the Fed. This, in turn, boosts the Pound Sterling (GBP) and acts as a tailwind for the GBP/USD pair. Investors expect the BoE to start easing in the August meeting. Nonetheless, BoE policymakers will see more evidence of inflation before making a decision.

Moving on, traders will keep an eye on the US February Nonfarm-Payrolls, Unemployment Rate, and Average Hourly Earning, due on Friday. These events could trigger volatility in the market. Market players will take cues from the data and find trading opportunities around the GBP/USD pair.

GBP/USD

Overview
Today last price	1.2811
Today Daily Change	0.0073
Today Daily Change %	0.57
Today daily open	1.2738

Trends
Daily SMA20	1.2643
Daily SMA50	1.2673
Daily SMA100	1.257
Daily SMA200	1.2581

Levels
Previous Daily High	1.2761
Previous Daily Low	1.269
Previous Weekly High	1.27
Previous Weekly Low	1.26
Previous Monthly High	1.2773
Previous Monthly Low	1.2518
Daily Fibonacci 38.2%	1.2734
Daily Fibonacci 61.8%	1.2717
Daily Pivot Point S1	1.2699
Daily Pivot Point S2	1.2659
Daily Pivot Point S3	1.2628
Daily Pivot Point R1	1.277
Daily Pivot Point R2	1.2801
Daily Pivot Point R3	1.2841

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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