• The GBP/USD soared close to 1.50% on disappointing US ISM Services data.
  • Hawkish Fed speaking failed to weigh on the GBP/USD.
  • Next week’s economic calendar would feature UK GDP, and US CPI reports.

The Pound Sterling (GBP) extended its gains against the US Dollar (USD), surging more than 160 pips on Friday, following a disappointing ISM Services report and an earlier jobs report. The GBP/USD Is trading at 1.2077.

US ISM Services Index plunges and weakened the USD

The GBP/USD printed another leg-up of more than 100 pips following the US Nonfarm Payrolls data release. Later, the Institute for Supply Management (ISM) revealed the Services PMI Index, which shrank to 49.6 against forecasts of 55 and trailed the November 56.5 jump. It should be said that it’s the lowest reading since May 2020, and traders should be wary that PMI readings below 50 indicate contraction.

Earlier, the US Department of Labor revealed that the US economy added more jobs than expected and that the Unemployment Rate edged lower. The report’s spotlight was Average Hourly Earning, which showed that wage inflation is easing, dropping to 4.6% YoY, below the 5.0% estimates.

Also read: GBP/USD pares Thursday losses, reclaims 1.1900 on soft USD after US NFP report

The GBP/USD extended its gains, above the 1.2050 mark, after the ISM Services PMI headline crossed newswires. The US Dollar Index, which tracks the American Dollar (USD) value against a basket of peers, plummets more than 1%, down at 104.000.

Meanwhile, further Fed speaking failed to underpin the US Dollar, as Federal Reserve Governor Lisa D. Cooks said that inflation is “far too high” and of “great concern” despite recent reports. In the meantime, Richmond’s Fed President Thomas Barkin said the Fed is still resolute on inflation and that it needs to stay on the case until inflation is “sustainably’ back to the 2% goal. He added that adopting a more gradual approach on interest rate paths should limit harm to the US economy.

UK’s next week’s calendar would feature Retail Sales, Gross Domestic Product, and the Trade Balance. On the US front, its calendar will feature the Consumer Price Index (CPI), unemployment claims, and the University of Michigan (UoM) Consumer Sentiment.

GBP/USD Key Technical Levels


Today last price 1.2076
Today Daily Change 0.0166
Today Daily Change % 1.39
Today daily open 1.191
Daily SMA20 1.2119
Daily SMA50 1.1947
Daily SMA100 1.1666
Daily SMA200 1.2024
Previous Daily High 1.2078
Previous Daily Low 1.1873
Previous Weekly High 1.2126
Previous Weekly Low 1.2002
Previous Monthly High 1.2447
Previous Monthly Low 1.1992
Daily Fibonacci 38.2% 1.1952
Daily Fibonacci 61.8% 1.2
Daily Pivot Point S1 1.1829
Daily Pivot Point S2 1.1749
Daily Pivot Point S3 1.1624
Daily Pivot Point R1 1.2034
Daily Pivot Point R2 1.2159
Daily Pivot Point R3 1.2239



Share: Feed news

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.

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content

Editors’ Picks

EUR/USD: Euro recovers ground but not re-attracting bulls yet Premium

EUR/USD: Euro recovers ground but not re-attracting bulls yet

The EUR/USD rose on Monday toward the 1.0800 area, recovering some of Friday’s slide, supported by an improvement in market sentiment, amid easing concerns on the banking sector.


GBP/USD closes in on 1.2300 as mood improves

GBP/USD closes in on 1.2300 as mood improves

GBP/USD has preserved its bullish momentum and advanced to the 1.2300 area in the second half of the day on Monday. The risk positive market atmosphere makes it difficult for the US Dollar to stay resilient against its rivals and fuels the pair's daily rally. Eyes on BOE Governor Bailey's speech.


Gold: XAU/USD pared losses and consolidates around $1,950.00 Premium

Gold: XAU/USD pared losses and consolidates around $1,950.00

Spot gold trades in the $1,950 price zone, sharply down on Monday as investors move away from safe-haven assets. The sentiment is positive at the start of the week amid easing concerns related to a global banking crisis.

Gold News

MicroStrategy buys $150 million worth of Bitcoin as institutional interest soars to eight-month high

MicroStrategy buys $150 million worth of Bitcoin as institutional interest soars to eight-month high

Bitcoin has been noting increasing institutional interest for the last few days as whale movement on the network grew. 

Read more

US Consumer Confidence Preview: No good news for Americans Premium

US Consumer Confidence Preview: No good news for Americans

The United States will publish the March Conference Board Consumer Confidence index, and market players anticipate it has contracted to 101 from 102.9 in February. 

Read more