GBP/USD Price Analysis: Cable hit some bids ahead of 1.30 but there is another important support area

GBP/USD hourly chart

After what seems like an eternity the US dollar has made a comeback today. The non-farm payroll data was the catalyst as the number beat analyst estimates of 1.6 million to print at 1.763 million. It will now be interesting to see if the price can continue to mean revert next week or carry back on with its relentless trend to the upside. Next week it is the UK's turn to release their latest employment data but it is hard to get the true figures as the Furlough system has not come to an end. 

Looking at the chart now and the reversal has not completed its pattern. If the red support zone just under 1.30 breaks to the downside that would be a good indication that the trend might change as the wave low would be taken out. Then technicians may be looking for a lower high lower low pattern to be created.

For now, it is too early to call a trend change. On the upside, if the price breaks back above the resistance level at 1.31 then it could be over for the bears. Today it seems that the purple support level was very effective. It had been used on a couple of other occasions and this time the bulls were lying in wait. 

The indicators are looking very bearish right now on the hourly chart. The Relative Strength Index has hit the oversold area and might retrace before the next move down. The MACD histogram is firmly in the red and the signal lines are under the mid-zone. Next week is pivotal for the pair as US CPI is out and the aforementioned UK employment figures. The main level to watch is the red horizontal line on the chart below.

Additional levels