GBP/USD Price Analysis: Bears take breather above 1.1900

GBP/USD has turned sideways above 1.1900 ahead of US NFP and UK manufacturing data.
The 10-year US Treasury yields have dropped firmly to near 3.83% amid mixed responses on the US labor market.
The Cable has met with the horizontal resistance plotted from 1.1915.

Sagar Dua FXStreet

The GBP/USD pair is displaying a back-and-forth action in a narrow range of 1.1904-1.1940 continuously from the late New York session. The Cable has turned sideways as investors are awaiting the release of the United States Nonfarm Payrolls (NFP) and the United Kingdom’s manufacturing data for fresh impetus.

The US Dollar Index (DXY) is facing heat in extending its recovery above 105.35 as mixed responses from US labor market-linked indicators have confused investors about the strength of the labor market. A significant jump in Initial Jobless Claims data released on Thursday, and a four-fold planned lay-off, as reported by Reuters, indicates signs of deceleration in the employment status, which has improved demand for US Treasury bonds. The 10-year US Treasury yields have dropped firmly to near 3.83%.

Stretched recovery in the GBP/USD pair has met with the horizontal resistance plotted from February 17 low at 1.1915 on an hourly scale. The Cable is demonstrating an inventory adjustment phase, which could be a transfer of inventory from institutional investors to retail participants.

The 20-period Exponential Moving Average (EMA) at 1.1910 is providing cushion to the Pound Sterling.

Meanwhile, the Relative Strength Index (RSI) (14) has slipped to near 60.00 but has not surrendered the bullish range yet.

Should the Cable break below the round-level support of 1.1900, US Dollar bulls will drag the asset further toward March 08 high at 1.1860 followed by November 17 low at 1.17633.

On the flip side, a move above February 24 high at 1.2040 will drive the asset toward February 23 high around 1.2080. A breach of the latter will expose the asset to February 21 high around 1.2140.

GBP/USD hourly chart

GBP/USD

Overview
Today last price	1.1928
Today Daily Change	0.0009
Today Daily Change %	0.08
Today daily open	1.1919

Trends
Daily SMA20	1.2015
Daily SMA50	1.213
Daily SMA100	1.201
Daily SMA200	1.1903

Levels
Previous Daily High	1.1939
Previous Daily Low	1.1832
Previous Weekly High	1.2143
Previous Weekly Low	1.1922
Previous Monthly High	1.2402
Previous Monthly Low	1.1915
Daily Fibonacci 38.2%	1.1898
Daily Fibonacci 61.8%	1.1873
Daily Pivot Point S1	1.1854
Daily Pivot Point S2	1.179
Daily Pivot Point S3	1.1747
Daily Pivot Point R1	1.1961
Daily Pivot Point R2	1.2003
Daily Pivot Point R3	1.2068

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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