GBP/USD remains on the defensive, with bulls capped below 1.2600

• The pound maintains its bearish tone below 1.2600.
• Today’s main focus is the US Nonfarm Payrolls report.
• The next downside targets are 1.2515 and 1.2460.

The Pound maintains the weak tone seen over the whole week, with upside attempts capped below the previous support at 1.2600 with all eyes on the US Nonfarm Payrolls report due later today.

The European calendar is light today, with only the UK Consumer inflation expectations worth mentioning. although the impact on the Pound is likely to be minor.

All eyes are on the US Nonfarm Payrolls

The spotlight today is on the US Nonfarm Payrolls report which is expected to show a slight increase in job creation in November. Earlier this week, the US JOLTs job openings and ADP employment report disappointed boosting expectations for Fed rate cuts in March 2024, although the US Dollar has remained moderately bid.

Technical indicators are pointing lower. The pair has printed a double-top at 1.2730, often a signal of a trend change, breaching below the 50-hour SMA and pushing against the 100 SMA in the same timeframe.

The next support levels are 1.2550 and 1.2515 ahead of the target of the above-mentioned figure, at 1.2460.

On the upside, a break above 1.2600 would cancel the negative view and shift the focus towards 1.2650 and 1.2730.

Technical levels to watch