• GBP/USD recovers from earlier losses advance 0.05% during the day.
  • Global bond yields, drop led by US Treasuries.
  • GBP/USD trader’s focus is on US inflation figures to be revealed on November 9.

GBP/USD stages a comeback during the New York session, after dipping as low as 1.3411, is trading at 1.3503, up some  0.05% at the time of writing. Positive US Nonfarm Payrolls report initially struck the British pound, which collapsed 70 pips towards the daily low. However, as investors dissect US jobs news, global bond yields plunge, led by US Treasury yields, with the 10-year benchmark note down almost seven basis points, sitting at 1.462%, undermining the US dollar prospects.

On Wednesday, the US Bureau of Labor Statistics reported that the Nonfarm Payrolls for October increased by 531K higher than the 425K foreseen by analysts. Additionally, the Unemployment Rate shows the labor market’s resilience, as it dropped from 4.7% to 4.6%. 

The GBP/USD, which was licking its wounds after the Bank of England held its interest rate unchanged (not a move expected at least by 50% of the analysts), continued its slide during the last two days. Nevertheless, it seems investors are reassessing current conditions, as money markets are witnessing a global bond sell-off, which acted as a headwind on the greenback, as portrayed by the US Dollar Index falling 0.09%, sitting at 94.24.

UK and US important macroeconomic events for the next week

The UK economic docket will feature on November 6, Retail Sales. Then on November 11, the Gross Domestic Product for the third quarter, followed by the Manufacturing and Industrial Production readings for September.

Across the pond, on November 8, the Producer Price Index for October, followed by November 9 Inflation figures for the same period. Then by November 12, the University of Michigan Consumer Sentiment Index for November.

GBP/USD Price Forecast: Technical outlook

In the daily chart, the GBP/USD pair bounced off 1.3411, and at press time is trading above Thursday’s close at 1.3497. Furthermore, if it achieves a daily close of at least around 1.3500, it would form a hammer after a strong downtrend, meaning that solid buying pressure around the lows of the day propelled the British pound higher. However, the Relative Strength Index (RSI) is at 37, flattish, which would refrain GBP/USD traders of opening fresh bids, on the possibility of higher prices.

GBP/USD TECHNICAL SUPPORT/RESISTANCE LEVELS

Overview
Today last price 1.3504
Today Daily Change 0.0006
Today Daily Change % 0.04
Today daily open 1.3498
 
Trends
Daily SMA20 1.3699
Daily SMA50 1.3706
Daily SMA100 1.3764
Daily SMA200 1.385
 
Levels
Previous Daily High 1.3698
Previous Daily Low 1.3471
Previous Weekly High 1.3829
Previous Weekly Low 1.3668
Previous Monthly High 1.3834
Previous Monthly Low 1.3434
Daily Fibonacci 38.2% 1.3558
Daily Fibonacci 61.8% 1.3611
Daily Pivot Point S1 1.3414
Daily Pivot Point S2 1.3329
Daily Pivot Point S3 1.3187
Daily Pivot Point R1 1.364
Daily Pivot Point R2 1.3782
Daily Pivot Point R3 1.3867

 

 

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