• The British pound falls for the fourth time in the week,, looks for a weekly close below 1.3300.
  • A dampened market sentiment hurts the prospects of the GBP as investors seek to safe-haven assets.
  • GBP/USD: In the 4-hour chart, the 50-SMA has acted as resistance, and rallies toward the moving average have been faded.

The British pound pares Thursday’s gains and some more, is down some 0.50%, trading at 1.3232 during the New York session at the time of writing. A risk-off market mood prompted investors to drop anything with the word “risk” attached to it, benefitting safe-haven assets. In the FX market, the USD, the JPY, and the CHF are the most aided of the abovementioned and are the stronger currencies as we approach the Wall Street close.

In the last three hours, the pound bounced off Friday’s daily low around 1.3210s, towards 1.3240s, on a steady move that could have been prompted by USD profit-taking. Also, USD bulls failed to break the 1.3200 figure on the back of the not-so-bad November’s Nonfarm Payrolls report, which in the case of have been in line with estimations or better, the GBP/USD would indeed be trading at new YTD lows.

As reported earlier, the US economy added 210K new jobs, shorter than the 550K estimated by experts. The headline showed a worse than expected report, but the Unemployment Rate dropping from 4.5% to 4.2% reinforced that the labor market is improving but not at the pace required. Additionally, the Fed seems to pivot from the maximum employment goal towards tackling inflation, as Fed Chief Jerome Powell said on the week that inflation is no longer “transitory” and should be no longer used when speaking of elevated prices.

Therefore, as the Fed pivoted towards inflation, the US Consumer Price Index (CPI) for October on Friday of next week would be the primary driver for GBP/USD traders, followed by the University of Michigan Consumer Sentiment for November on its preliminary read. 

In the UK economic docket, BoE’s speaking, Retail Sales, Manufacturing Production and GDP,  would entertain GBP/USD traders.

GBP/USD Price Forecast: Technical outlook

In the 4-hour chart, the GBP/USD has a downward bias, as shown by the 4-hour simple moving averages (SMA’s), which have a downslope and reside above the spot price. Also, the 50-SMA has undergone three tests, and in each of those, the GBP has failed to break above it, leaving that level as a strong resistance level.

In the outcome of extending the downward move, the first support would be 1.3200. The breach of the latter would expose the November 30 low at 1.3194, followed by the 1.3100 figure.

Contrarily on the upside, the first resistance would be 1.3300. A break above that level would expose the 50-SMA at 1.3318, followed by the 100-SMA at 1.3374.

GBP/USD

Overview
Today last price 1.3234
Today Daily Change -0.0066
Today Daily Change % -0.50
Today daily open 1.33
 
Trends
Daily SMA20 1.3401
Daily SMA50 1.3556
Daily SMA100 1.3673
Daily SMA200 1.3805
 
Levels
Previous Daily High 1.3334
Previous Daily Low 1.3264
Previous Weekly High 1.3457
Previous Weekly Low 1.3278
Previous Monthly High 1.3698
Previous Monthly Low 1.3194
Daily Fibonacci 38.2% 1.3307
Daily Fibonacci 61.8% 1.329
Daily Pivot Point S1 1.3264
Daily Pivot Point S2 1.3229
Daily Pivot Point S3 1.3194
Daily Pivot Point R1 1.3334
Daily Pivot Point R2 1.3369
Daily Pivot Point R3 1.3405

 

 

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.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

AUD/USD pressured around 0.6940 ahead of Australian employment data

AUD/USD pressured around 0.6940 ahead of Australian employment data

The AUD/USD pair trades near a weekly low of 0.6910, down on Wednesday as investors weigh dismal Australian data and mounting recession concerns. Employment figures coming up next.

AUD/USD News

EUR/USD ticks higher with FOMC Meeting Minutes

EUR/USD ticks higher with FOMC Meeting Minutes

EUR/USD ticked north following the release of the Federal Reserve’s document but remains subdued below the 1.0200 figure. US policymakers unanimously agreed to hike rates by 75 bps, seeing a slowing pace of hikes at some point.

EUR/USD News

Gold bears pressuring a critical Fibonacci support

Gold bears pressuring a critical Fibonacci support

The dollar is the overall winner across the FX board today and ahead of the release of the FOMC Meeting Minutes, with gold trading near a fresh one-week low.  XAUUSD is pressuring the 38.2% retracement of its latest daily advance.

Gold News

Shiba Inu on fire, another price rally around the corner?

Shiba Inu on fire, another price rally around the corner?

Shiba is closer to its breakout according to analysts. While declining trade volume and inflows to SHIB are typical of a bearish trend reversal, analysts remain bullish on SHIB. They predict recovery after the meme coin yielded nearly 50% gains within a week. 

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures