GBP/USD price analysis: Pound corrects down after stellar US Nonfarm Payrolls

The Nonfarm Payrolls surprised to the upside with 266k vs. 180k forecast.
The cable is correcting down and challenging the 1.3122 level.

Flavio Tosti Independent Analyst

GBP/USD daily chart

Following November’s consolidation, the spot eventually broke to the upside hitting levels not seen since early May of this year. In the New York session, the Nonfarm Payrolls smashed market expectations with 266k vs. 180k forecast.

GBP/USD four-hour chart

After a sharp run-up, the market is correcting down as GBP/USD is testing the 1.3122 support. If bears break this level, the spot could continue the correction towards the 1.3074 and 1.3026 price levels, according to the Technical Confluences Indicator.

GBP/USD 30-minute chart

The market is challenging the 100 SMA. Bulls would need to reclaim the 1.3150 level to attract further buying and a potential run towards the 1.3211 and 1.3243 levels.

Additional key levels

GBP/USD

Overview
Today last price	1.3128
Today Daily Change	-0.0031
Today Daily Change %	-0.24
Today daily open	1.3159

Trends
Daily SMA20	1.292
Daily SMA50	1.277
Daily SMA100	1.252
Daily SMA200	1.2697

Levels
Previous Daily High	1.3167
Previous Daily Low	1.3098
Previous Weekly High	1.2952
Previous Weekly Low	1.2827
Previous Monthly High	1.2986
Previous Monthly Low	1.2769
Daily Fibonacci 38.2%	1.314
Daily Fibonacci 61.8%	1.3124
Daily Pivot Point S1	1.3116
Daily Pivot Point S2	1.3073
Daily Pivot Point S3	1.3047
Daily Pivot Point R1	1.3184
Daily Pivot Point R2	1.321
Daily Pivot Point R3	1.3253

Author

Flavio Tosti

Independent Analyst

EUR/USD onsolidates around mid-1.1800s as traders keenly await FOMC Minutes

The EUR/USD pair struggles to capitalize on the previous day's goodish rebound from the 1.1800 neighborhood, or a one-and-a-half-week low, and consolidates in a narrow band during the Asian session on Wednesday. Spot prices currently trade just below mid-1.1800s, nearly unchanged for the day.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold bounces back toward $4,900, looks to FOMC Minutes

Gold is attempting a bounce from the $4,850 level, having touched a one-week low on Tuesday. Signs of progress in US–Iran talks dented demand for the traditional safe-haven bullion, weighing on Gold in early trades. However, rising bets for more Fed rate cuts keep the US Dollar bulls on the defensive and act as a tailwind for the non-yielding yellow metal. Traders now seem reluctant ahead of the FOMC Minutes, which would offer cues about the Fed's rate-cut path and provide some meaningful impetus.

DeFi could lift crypto market from current bear phase: Bitwise

Bitwise Chief Investment Officer Matt Hougan hinted that the decentralized finance sector could lead the crypto market out of the current bear phase, citing Aave Labs’ latest community proposal as a potential signal of good things to come.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.