GBP/USD struggles near multi-week low, below 1.1900 mark ahead of US NFP

GBP/USD remains on the defensive near a multi-week low amid sustained USD buying.
Thursday’s upbeat US data reaffirms hawkish Fed expectations and underpins the USD.
The focus remains glued to the release of the closely-watched US monthly jobs report.

Haresh Menghani FXStreet

The GBP/USD pair struggles to gain any meaningful traction on Friday and oscillated in a narrow trading band through the first half of the European session. The pair is currently placed just below the 1.1900 mark, or a fresh six-week low touched in the last hour.

Thursday's upbeat US macro data continues to boost the US Dollar for the second successive day, which, in turn, is seen as a key factor acting as a headwind for the GBP/USD pair. In fact, the better-than-expected ADP report on the US private-sector employment and Initial Jobless Claims pointed to a resilient US labour market.

This further suggested that the economy ended 2022 on solid footing and could allow the Federal Reserve to stick to its aggressive rate hike path. That said, subdued action around the US Treasury bond yields fails to impress the USD bulls and could lend some support to the GBP/USD pair ahead of the closely-watched US jobs data.

The popularly known US NFP report, due for release later during the early North American session, could influence the Fed's near-term policy outlook. This, in turn, will play a key role in driving the USD demand and provide a fresh directional impetus to the GBP/USD pair. The bleak outlook for the UK economy, meanwhile, still favours bearish traders.

Hence, any attempted recovery could now be seen as a selling opportunity and runs the risk of fizzling out. The GBP/USD pair seems vulnerable to extending its recent pullback from the vicinity of mid-1.2400s, or the highest level since June 2022. Nevertheless, spot prices remain on track to register heavy weekly losses, marking the third in the previous four.

Technical levels to watch

GBP/USD

Overview
Today last price	1.1887
Today Daily Change	-0.0023
Today Daily Change %	-0.19
Today daily open	1.191

Trends
Daily SMA20	1.2119
Daily SMA50	1.1947
Daily SMA100	1.1666
Daily SMA200	1.2024

Levels
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

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

GBP/USD loses momentum, flirts with 1.3200

GBP/USD is struggling to maintain its positive bias on Thursday, retreating toward the 1.3200 region in response to the pick in the buying interest around the Greenback. That said, Cable remains under scrutiny as cautious market sentiment keeps investors focused on the US-Iran conflict and political effervescence in the UK.

EUR/USD trims gains, challenges 1.1400

EUR/USD now gives away part of its earlier advance, receding toward the 1.1400 contention zone on Thursday. Meanwhile, the pair’s recovery comes amid extra losses in the US Dollar, at the time when while investors continue to monitor developments in the Middle East and sentiment surrounding global technology stocks.

Gold remains bid and close to $4,100

Gold accelerates its recovery and approaches the key $4,000 mark per troy ounce at the end of the week, adding to Thursday’s advance. However, expectations for a hawkish Fed remain steady and keep the yellow metal’s potential upside contained.

Crypto Today: Bitcoin at $60,000, Ethereum at $1,500, and XRP at $1 face a make-or-break test

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are trading in the red on Friday after three consecutive days of losses, testing their respective make-or-break support levels.

Week ahead – NFP report to challenge Dollar strength and the hawkish Fed

Dollar strength dominates markets, as the hawkish Fed overshadows geopolitics and lower oil prices. NFP week could drive September Fed hike expectations and boost market volatility. The euro lacks fresh bullish catalysts, all eyes on the preliminary inflation report and the ECB Forum.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.